Oil jumps more than 2% after larger-than-expected U.S. inventory drop
Crude prices rose more than 2% on Wednesday after government data showed U.S. oil inventories fell across the board, bolstering hopes that fuel demand in the world’s biggest economy will withstand the coronavirus pandemic.
Brent crude was up 95 cents, or 2.1%, at $45.44 a barrel, after falling around 1% on Tuesday. West Texas Intermediate oil gained $1.06, or 2.55%, to settle at $42.67 per barrel, having dropped 0.8% in the previous session.
U.S. crude oil, gasoline and distillate inventories fell last week as crude production dropped sharply and refiners ramped up production, the Energy Information Administration said on Wednesday.
Crude inventories fell by 4.5 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 2.9 million-barrel drop.
The report was “very supportive,” said Tony Headrick, energy markets analyst at CHS Hedging. “Looking beyond draws across the board, crude oil production finally caved in as anticipated, down 300,000 barrels.”
Reference: CNBC
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