OIL FUTURES: Crude Settles Above $90/Bbl As US Stockpiles Fall

(Dow Jones)--Crude oil futures prices settled above $90 a barrel Wednesday, as declining supplies and an improving economy have pushed prices to their highest level in more than two years.

The U.S. has hemorrhaged 19.3 million barrels of oil since late November, with supplies dropping at their fastest pace since May 2008, when oil prices were well into record territory above $100 a barrel. Oil futures have rallied 13% since mid-November, putting crude on a track back towards triple digits.

Light, sweet crude for February delivery settled at $90.48 a barrel, up 66 cents on the New York Mercantile Exchange, after rising as high as $90.80 earlier in the session. Brent crude on the ICE futures exchange traded 49 cents higher at $93.69 a barrel.

"A settlement over $90 is a pretty key level. Now we're starting to see prices at the pump make really big moves," said Zachary Oxman, managing director of TrendMax Futures.

The move higher was sparked by another big drop in U.S. oil inventories in the latest Department of Energy report. Crude stocks fell by 5.3 million barrels in the week ended Friday, following a 9.9-million-barrel plunge in last week's report, the largest decline in eight years. (more)