Crude price rises despite rising supplies

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Oil prices rose even after the government reported that the nation is consuming less than it has in years and that inventories are the highest in nearly two decades.

Benchmark crude for June delivery gained $1.05 to settle at $50.97 a barrel on the New York Mercantile Exchange.

In recent weeks, the price of oil has followed action in the stock markets, with many traders looking for hints of an economic rebound that would give energy prices a boost.

The Energy Information Administration reported that oil inventories rose by more than 4 million barrels the week ending April 24. That was more than twice the gain expected by analysts.

Oil rose above $51 a barrel April 30 in Asia as investors took heart from optimistic comments from the U.S. Federal Reserve that the worst recession in decades is likely easing.

Benchmark crude for June delivery was up 52 cents to $51.49 a barrel by midday in Singapore, in electronic trading on the New York Mercantile Exchange.

—The Associated Press