Oil hits new high for the year

Crude oil futures rose to new highs for the yearWednesday on word of a greater-than-expected drop in U.S. gasoline inventories.

Crude oil for December delivery closed trading up$2.25, or close tothreeper cent, to $81.37 a barrelon the New York Mercantile Exchange, its eighth straight day of increases.

The U.S. Energy Department reported that gasoline supplies fell by 2.21 million barrels, or 1.1 per cent, in the week to Oct. 16, to 206.9 million barrels.

Oil, which is priced in U.S. dollars, was also pushed as the American currency fell against the Euro.

"The gasoline number has clearly changed the landscape," John Kilduff, senior vice-president of energy at MF Global in New York. told Bloomberg.

"The industry is seen constraining fuel supply, which is underpinning the market."