Oil Rockets to $135 on Surprise Supply Decline

Unexpected decline in US oil and gasoline supplies sparks surge
By Jim O'Neill,  Newser User
Posted May 22, 2008 6:11 AM CDT
The price of oil has continued to climb.   (AP Photo)
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(Newser) – 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.''