Oil price up on decline in U.S. gas stocks

Oil and gasoline prices rose April 12 after the U.S. government reported dwindling domestic gasoline stockpiles in the face of unflagging demand.

Total U.S. gasoline stockpiles sank by 5.5 million barrels last week to 199.7 million barrels, the U.S. Energy Information Administration reported April 11. Analysts had expected a 1.3 million barrel decline, according to a survey by Dow Jones Newswires.

Word of refinery malfunctions in Texas and Louisiana further boosted prices in the afternoon, said Citigroup Global Markets energy analyst Tim Evans.

The gasoline report proved the driving factor, however, spurring traders to think long-term about unrelenting demand amid tight supplies, said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Gasoline futures rose 3.31 cents to settle at $2.1918 per gallon on the New York Mercantile Exchange.

Light, sweet crude for May delivery rose $1.84 to close at $63.85 a barrel on the New York Mercantile Exchange. Brent crude for May rose 88 cents to $68.72 a barrel on the ICE Futures exchange in London.

—The Associated Press