Oil Rockets to $135 on Surprise Supply Decline

A surprise 5.32 million barrel decline in US crude oil stockpiles prompted oil prices to surge past a record $135 a barrel in after-hours New York trading this morning, extending oil's runup to 19% this month, reports Bloomberg. The Energy Department also said yesterday that gasoline stockpiles had declined some 755,000 barrels, while analysts had expected an increase in reserves.

“There's agreement that $200 is possible and that's getting more people into the market,” said an analyst. “We have very little supply cushion going forward and that's playing into the minds of investors.'' (More oil prices stories.)