closed at $28, page-104

crude oil rises to us$67 Crude Oil Rises After U.S. Gasoline Inventories Decline More Than Expected
April 5 (Bloomberg) --

Crude oil rose after the government reported a greater-than-expected decline in gasoline inventories.

Supplies of the fuel plunged 4.4 million barrels to 211.8 million in the week ended March 31, the Energy Department reported today. Stockpiles of gasoline were expected to fall 1.9 million barrels, according to the median estimate of 13 analysts surveyed by Bloomberg News. Supplies of the fuel have dropped 6.2 percent since Feb. 24, according to data compiled by Bloomberg.

``Gasoline stocks are going to become tight,'' said James Cordier, president of Liberty Trading Group in Tampa, Florida. ``We're going to see May and June contracts above $2,'' which will lead to pump prices above $3 a gallon, he said.

Crude oil for May delivery rose 84 cents, or 1.3 percent, to $67.07 a barrel on the New York Mercantile Exchange. Prices are 20 percent higher than a year ago.

Brent crude oil for May settlement rose 71 cents, or 1.1 percent, to $67.10 a barrel on London's ICE Futures exchange.

Oil stockpiles increased by 2.1 million barrels to 342.8 million barrels in the week ended March 31, the department reported today. An increase of 1 million barrels was expected, according to the analyst survey. Oil supplies are 11.5 percent above their five-year average, according to the department.

Demand Rises

Gasoline demand in the U.S., the world's biggest oil consumer, averaged 9.1 million barrels a day in the four weeks ended March 31, 0.9 percent higher than a year ago, the Energy Department said. Stockpiles have fallen for five consecutive weeks. Supplies are 0.2 percent lower than a year earlier and are 3.7 percent higher than the five-year average.

Gasoline for May delivery rose 5.16 cents, or 2.7 percent, to $1.9471 a gallon on the Nymex. Prices are up 15 percent from a year ago.

Gasoline prices are being driven more by demand than supply, Cordier said.

``The U.S. has insatiable demand for gasoline and people will pay whatever it takes to get it,'' he said. ``You've got driving season and shortly after that you have cooling season,'' which should lead to crude oil being in the mind-$70 a barrel range by June or July, he said.

Driving season in the U.S. begins with the Memorial Day holiday weekend in late May and lasts until the Labor Day holiday weekend in September. Cooling season refers to the summer months when air-conditioning demand increases.