Despite an unexpected surge in crude stockpiles, supply concerns have pushed the front-month crude oil contract into positive territory this morning. The Energy Department reported that crude inventories surged by 9.4 million barrels last week to 305.9 million barrels. Analysts were expecting a much more tepid rise of 1.7 million barrels. On the other hand, gasoline supplies plunged by 6.2 million barrels to 196.6 million barrels, outpacing analysts' expectations for a drop of 3 million barrels.

The government also reported that gasoline demand for the 4 weeks ended August 15 was down 1.6% from the year-ago period to average 9.5 million barrels per day. Refinery utilization fell unexpectedly, losing 0.2 percentage point to arrive at 85.7%. Analysts were looking for an increase of 0.4 percentage point.

Following the report, September-dated crude futures tacked on $1.42 to trade at $115.95 per barrel. Some commentary from the Organization of Petroleum Exporting Countries (OPEC) is likely stoking supply concerns today. Venezuela's energy and oil minister, Rafael Ramirez, said yesterday that the cartel should not allow oil prices to collapse, and slashed production output may be necessary. Oil prices are down about 21% from their July peak of $147.27 per barrel.

Shokri Ghanem, chairman of Libya's National Oil Corporation, tried to quell speculation on a production cut by telling Reuters, "We are not thinking of doing anything, but we are watching the market carefully." However, Ghanem added, "The market is more than well-supplied."