Oil up after surprise drop in US crude stocks

Oil prices are rising after the government reported a surprise drop in U.S. crude stockpiles.

The Energy Information Administration said crude supplies fell by 1.5 million barrels to 290.2 million barrels for the week ending Sept. 19. Analysts surveyed by energy information provider Platts had expected oil stocks to rise by 1.6 million barrels.

Investors viewed the drawdown as more evidence of shrinking U.S. crude output after Hurricanes Gustav and Ike forced widespread shutdowns of energy installation in the Gulf of Mexico.

Light, sweet crude for November delivery was up $1.28 at $107.89 a barrel on the New York Mercantile Exchange.