Wednesday 13 June 2007

Oil rises above $69, supply worries return

By Jane Merriman and Alex Lawler

LONDON (Reuters) - Oil rose above $69 a barrel on Wednesday after a U.S. government report showed gasoline inventories held steady and refineries ran at sluggish rates, renewing supply concerns.

Gasoline stocks, expected to rise in the latest week, were unchanged, the U.S. Energy Information Administration said in a weekly report. Refinery use, also expected to increase, fell by 0.4 percentage points.

"The market was set up for a bearish report and this surprised everyone, especially the refining number," said Mike Fitzpatrick, vice president, energy risk management, at Man Financial in New York.