Crude Oil Surges To Highest Levels In Three Weeks

(RTTNews) - The price of crude oil showed a substantial move to the upside during trading on Thursday, moving higher for the sixth consecutive session.

Crude for October delivery surged $2 or 2.5 percent to $83.63 a barrel, reaching its highest closing level in three weeks.

Oil continued to benefit from yesterday's report showing another steep drop in U.S. crude oil inventories in the week ended August 25th.

The report from the Energy Information Administration showed crude oil inventories plunged by 10.6 million barrels last week after tumbling by 6.1 million barrels in the previous week. Economists had expected crude oil inventories to decrease by 3.3 million barrels.

The increase by the price of crude oil may also have reflected a positive reaction to a Commerce Department showing continued strength in consumer spending.

The Commerce Department said consumer spending advance by 0.8 percent in July after climbing by an upwardly revised 0.6 percent in June. Economists had expected spending to increase by 0.6 percent.

The report also added to optimism about the Federal Reserve leaving interest rates unchanged, as it showed consumer price growth in the U.S. accelerated in line with economist estimates in the month of July.