Oil jumps more than 2% after U.S. inventory draw
Oil prices rose more than 2% on Wednesday, boosted by draws in U.S. inventories of crude, gasoline and distillates that lifted investors’ hopes for some return in fuel demand.
Brent crude futures gained $1.12, or 2.24%, to settle at $51.20 per barrel, while West Texas Intermediate (WTI) crude futures settled 2.34%, or $1.10, higher at $48.12 per barrel.
U.S. crude inventories fell by 562,000 barrels in the week to Dec. 18 to 499.5 million barrels, the Energy Information Administration said on Wednesday.
Gasoline stocks fell by a surprise 1.1 million barrels in the week to 237.8 million barrels, the EIA said, while distillate stockpiles fell by 2.3 million barrels in the week to 148.9 million barrels, more than expected.
falling U.S. dollar also supported prices. A weak greenback makes dollar-denominated commodities such as crude oil cheaper to holders of other currencies.
Investors also kept an eye on Nigeria, where supply disruptions helped lift prices. Exxon Mobil Corp issued a force majeure on the Qua Iboe crude oil export terminal last week after a fire hit the facility and injured two workers.
A source told Reuters production is expected to resume in early January.
The stream was expected to load about 180,000 barrels per day (bpd) in December and 150,000 bpd in January.
Reference: CNBC
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