Wednesday's Petroleum Inventory Report by the U.S. Department of Energy's Energy Information Administration showed that crude oil inventories rose by 2.1 million barrels in the week ending Friday to 334.5 million barrels. Traders, on average, had expected crude oil inventories to fall by 1.2 million barrels, according to a Dow Jones Newswires survey of analyst estimates.

Gasoline inventories fell by 2.8 million barrels. Analysts had expected a 200,000-barrel increase in gasoline inventories. Distillate stockpiles, which include heating oil and diesel fuel, remained flat as heating oil inventories fell while diesel stockpiles rose.

Light, sweet crude for June delivery rose $1.26 cents to settle at $65.84 on the New York Mercantile Exchange. The contract fell $1.31 a barrel on Tuesday.

Brent crude for June delivery gained $1.41 to settle at $68.57 a barrel on the ICE Futures exchange in London.

Gasoline futures gained 7.37 cents to settle at $2.2826 a gallon.

Baker Hughes reported EPS of $1.17 versus estimates of $1.10, while revenue rose 20% in the quarter to $2.47 billion. North American revenue was up 14% at Baker Hughes (to $1.047b); the company is forecasting about 7% growth in that market for the rest of the year and 19% to 20% for international markets.

Petroleum Inventory Report

Gasoline Inventories down 2.7 Million Barrels

Crude Inventories down 1Million Barrels

Distillates down 0.8 Million Barrels

Double Top Breakout For Oil Service Index

The PHLX OIL SERVICE SECTOR INDEX (OSX) has broken through a double top at 218 and is now poised to test the highs of May/June 2006.

Petroleum Inventory Report

Crude Inventories up 0.7 Million Barrels

Distillates Up 0.1 Million Barrels

Gasoline Inventories down 5.5 Million Barrels

The PHLX OIL SERVICE SECTOR INDEX (OSX) currently is at a double top at 218. If the index can break through this level it may be poised to test the highs of summer 2006.