Oil prices surge after US crude inventories rise less than feared
NEW YORK: Oil prices surged on Wednesday after US crude stockpiles grew less than expected and gasoline posted a surprise draw, adding to optimism for an improvement in demand as some European countries and US cities move to ease coronavirus lockdowns.
Crude prices have been under pressure as fuel demand worldwide has dropped by roughly 30 per cent. Major oil producing-nations agreed in mid-April to cut output by nearly 10 million barrels per day, while shale producers and oil majors are also reducing production.
Brent crude futures were up $2.23, or 11 per cent, at $22.69 a barrel by 12:05 p.m. EDT (1605 GMT). US West Texas Intermediate (WTI) crude futures soared $3.58, or 29 per cent, to $15.92 a barrel following a plunge into negative territory last week.
