The Energy Information Administration’s report that crude oil inventories in the U.S. shed 8 million barrels last week apparently spurred higher crude oil futures on Wednesday.
West Texas Intermediate crude for the December contract rose $1.3 or 3.8% to settle at $39.09 per barrel.
Brent Crude, the benchmark on the ICE futures in Europe finished up $1.41 or 3.55% at $41.12 per barrel.
U.S. crude oil inventories total 484.4 million barrels, a mark that is still above a five-year average. Analysts believe the resurgence of the COVID-19 pandemic will likely cause continued weakening of oil demand. As a result, it could mean an increase in crude oil inventories.
The EIA also reported a 1.5-million-barrel build in gasoline inventories for the week to October 30, compared with a decline of 900,000 barrels for the previous week.
Crude futures advanced after a U.S. government report showed domestic crude supplies falling by 8 million barrels last week, while distillate stockpiles also declined. Still, gasoline inventories rose by 1.54 million barrels last week, with a gauge of gasoline demand down 11% compared with the same period last year.
