NYMEX light oil trading around $70 after surging overnight

NYMEX Light oil prices are currently trading around $70 a barrel Thursday in Asia after surging overnight on signs US gasoline demand may be improving. Benchmark crude futures for November deliver was down 72 cents at $69.89 by midday in Singapore in electronic trading on the New York Mercantile Exchange.

Light oil prices jumped $3.90 to settle at $70.61 on Wednesday after the Energy Information Administration said US gasoline stockpiles unexpectedly dropped 1.6 million barrels last week from the previous week. Analysts had expected a jump of 1.2 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The EIA also said demand for gasoline over the four weeks ended Sept. 25 was 5.4 percent higher than last year. “Gasoline demand continues to improve,” Barclays Capital said in a report. “We see the global market adjustment as remaining on track for a slow and steady soft landing for both prices and quantities.”

Barclays said it expects crude oil prices to average $76 a barrel in the fourth quarter and $85 next year. In London, Brent crude fell 65 cents to $68.42 the ICE Futures exchange.

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