COMMODITIES : Oil Prices Rise on Word That Inventories Dropped

With the nation still reeling from spiraling heating oil prices in one of the coldest Decembers on record, oil prices surged Wednesday after news of falling inventories.

On other markets, grain and soybeans were lower, livestock and pork were mixed, and copper declined.

The rise came amid continued concern over supplies following American Petroleum Institute inventory data, said Jerry Samuels, an analyst with Shearson Lehman Hutton Inc. in New York.

The API figures, released Tuesday, showed a drawdown of 6.4 million barrels in gasoline stocks last week, more than was expected. There also was a decrease in stocks of distillates, which include heating oil, but a slight increase in crude oil stocks.

West Texas Intermediate crude oil was 45 to 83 cents higher, with February at $22.90 a barrel; heating oil was 1.40 to 2 cents higher, with February at 66.88 cents a gallon, and unleaded gasoline was 1.20 to 3.45 cents higher, with February at 64.33 cents a gallon.

Home heating oil for February delivery, which had been driving the market until Tuesday, gained 1.83 cents on the Merc. Heating oil for March delivery was up the Merc’s 2-cent limit.

Grain and soybean futures prices closed lower on the Chicago Board of Trade.

A lack of export business dragged down wheat prices, as traders showed disappointment over the Soviet Union’s failure to make additional purchases after a 480,000-metric-ton buy of U.S. wheat Tuesday.

Forecasts of rain for the Central Plains, which would aid the growth of the winter wheat crop, also hampered futures prices. Corn prices were pressured by increased marketing by farmers, said analyst Joel Karlin of Research Department Inc. in Chicago.

Soybeans were pushed down by reports of rain in South America, which should help the growth of soybean crops, by increased selling and by the failure of new business to materialize in the soy oil market.

Wheat was a 0.50 cent to 1.75 cents lower, with March at $4.055 a bushel; corn was 0.75 cent to 1.50 cents lower, with March at $2.38 a bushel; oats were 3.75 to 4.50 cents lower, with March at $1.45 cents a bushel, and soybeans were 2.75 to 4.75 cents lower, with January at $5.6725 a bushel.