Oil Extends Gains As EIA Reports a More Than 6 Million-barrel Drop In U.S. Crude Supplies

By Myra P. Saefong Markets MarketWatch Pulse

Oil prices rallied Thursday, extending earlier gains after data from the U.S. Energy Information Administration showed that domestic crude supplies dropped by 6.3 million barrels for the week ended June 30. That topped forecasts for a decline of 1.6 million barrels by analysts surveyed by S&P Global Platts, and also came in above the fall of 5.8 barrels reported by the American Petroleum Institute late Wednesday. Supply data were released a day late because of Tuesday's Independence Day holiday. Gasoline stockpiles also fell by 3.7 million barrels, while distillate stockpiles decreased by 1.9 million barrels last week, according to the EIA. August crude rose $1.24, or 2.8%, to $46.37 a barrel on the New York Mercantile Exchange. It traded at $45.77 before the supply data.

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