2013.08.2806:07:06UTC+00Oil exceeds $110 as Syria strike fears surge

Syria was the focus of attention for oil markets early Wednesday, with futures surging in electronic transaction despite bearish U.S. supply data.

Benchmark U.S. crude oil for October delivery bolstered another $1.16, or 1.1%, to reach $110.17 a barrel after increasing almost 3% Tuesday on the New York Mercantile Exchange.

Crude supplies climb in U.S.

The Syrian concerns trumped the bearish influence from a surprise gain for U.S. crude-oil supplies last week, according to American Petroleum Institute data out late Tuesday.

Reporting after the close of Nymex trade, the API said crude stocks rose by 2.5 million barrels for the week ended Aug. 23, confounding expectations for a drop of 250,000 barrels, as seen in a Platts survey of analysts.

October Nymex crude declined a bit after the API data release but soon erased those losses to continue their hike.

A separate weekly supply report from the U.S. Energy Information Administration — generally seen as more definitive — was due out later Wednesday at 10:30 a.m. U.S. Eastern time.

Meanwhile, other energy futures saw strong gains Wednesday, with September gasoline trading 3 cents higher, or 0.8%, to $3.06 a gallon, on top of its 8-cent rally on Tuesday.

According to the API numbers, gasoline stockpiles fell by 1.1 million barrels last week, trailing a projected 1.5-million-barrel drop from the Platts survey.

September heating oil uptrend 3 cents, or 1%, to $3.19 a gallon after making its own 8-cent advance the previous day.

In this case, the API data supported the upward move, with the report showing a negligible rise of 3,000 barrels for distillates — which include heating oil — against a projected 1-million-barrel rise in the Platts survey.

September natural gas jumped 1 cent, or 0.4%, to $3.55 per million British thermal units, after a 2-cent rise on Tuesday, with the contract due to expire at the close of Wednesday’s Nymex session.