Oil Gains After API Data Show Fall In U.S. Crude Supply

Oil futures rose in electronic trading late Tuesday after the American Petroleum Institute reported that crude supplies fell 1.5 million barrels for the week ended May 1, according to sources. A Platts survey of analysts forecast a climb of 1 million barrels. "The draw in crude breaks the streak of builds and adds credence to the argument that U.S. output is peaking," said Phil Flynn, senior market analyst at Price Futures Group. "Demand also looks good." Following the data, June crude was at $60.77 a barrel in electronic trading, up from the $60.40 settlement on Nymex. The more closely watched Energy Information Administration report is due Wednesday.