Oil prices gained on Wednesday after data showed a surprise drop in U.S. crude inventories.
The West Texas Intermediate for July delivery rose 1.53 U.S. dollars to settle at 33.49 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery was up 1.10 dollars to close at 35.75 dollars a barrel on the London ICE Futures Exchange.
U.S. crude oil inventories decreased by 5.0 million barrels during the week ending May 15, the U.S. Energy Information Administration (EIA) reported on Wednesday. According to estimates from S&P Global Platts, analysts had been expecting an increase of 2.4 million barrels.
The EIA report also showed crude stocks at Cushing, a key storage and delivery hub for U.S. crude, fell by about 5.5 million barrels for the week, easing concerns over storage capacity.
Optimism was noticeable lately on energy markets as traders eyed signs of output cuts while weighing the possibility of a demand recovery as more economies began to relax coronavirus-tied lockdown restrictions. However, experts warned that downside risks remain in the foreseeable future.
"Commodity prices stabilized into the second quarter and have moved higher lately. But prices are likely to stay volatile as markets grapple with weak economic activity and excess supply in the short run," analysts at UBS said in a research note on Wednesday.
Editor:Cherie
