WASHINGTON (dpa-AFX) - Crude oil futures rose sharply on Wednesday, buoyed by data showing a significant drop in U.S. crude inventories in the week ended February 22.
The OPEC-led crude output reduction and the U.S. sanctions on Iran and Venezuela also aided oil's uptick.
West Texas Intermediate Crude oil futures for April ended up $1.44, or 2.6%, at %56.94 a barrel.
On Tuesday, crude oil futures for April ended up $0.02, or about 0.04%, at $55.50 a barrel.
According to data released by Energy Information Administration this morning, crude oil inventories in the U.S. dropped for the first time in six weeks, falling by 8.65 million barrels in the week to February 22, more than thrice the expected decline.
In the previous week, crude oil inventories had risen by nearly 3.7 million barrels.
The EIA report said gasoline inventories fell by 1.91 million barrels last week, while distillate stockpiles, which include diesel, decreased by 0.3 million barrels.
Late on Tuesday, a report released by the American Petroleum Institute said U.S. crude oil inventories fell by 4.2 million barrels in the week to Feb. 22.
Oil's rise was also supported by media reports that suggested OPEC and its allies would stick with their agreement to cut oil supply despite pressure from U.S. President Donald Trump to stop artificially tightening markets.
Based on current market data, the OPEC plus group is 'likely to continue with the production cuts until the end of the year', Reuters said, citing sources. The cartel will meet in April to decide its output policy.
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