Oil hits record above $144 on U.S. inventory drop

By Robert Campbell

NEW YORK (Reuters) - Oil prices shot to a record high above $144 a barrel on Wednesday after a drop in U.S. crude inventories stoked supply concerns.

U.S. crude hit a record $144.32 a barrel in post-settlement trade on Wednesday after settling up $2.60 at $143.57 a barrel.

London Brent settled up $3.59 at $144.26 a barrel after hitting an all-time high of $144.95.

U.S. crude oil stocks fell by 2 million barrels to 299.8 million barrels last week, putting commercial inventories below 300 million barrels for the first time since January, the U.S. Energy Information Administration reported.

"The 2 million-barrel draw in crude stocks was supportive, as imports remain relatively low for this time of year," said Tim Evans, an energy analyst at Citi Futures Perspective.

Gasoline stocks rose, however, as high pump prices continued to cut summer gasoline demand.

A smaller-than-expected rise in distillate stocks, a category that includes heating oil and diesel, pushed U.S. heating oil futures to a record high.

Oil prices have jumped seven-fold since 2002 as demand from emerging economies like China and India stretch supply growth.  Continued...