Crude oil prices moved higher on Wednesday amid hopes energy demand will see an increase in the near future.
The decision of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to stick to their plan of start raising production gradually from May, expecting demand for oil will pick up soon.
Data showing a much smaller than expected increase in U.S. crude inventories last week contributed as well to oil’s uptick.
West Texas Intermediate Crude oil futures for June ended higher by $0.92 or about 1.5% at $63.86 a barrel, the highest closing level in six weeks.
Brent crude futures were up $0.68 or 1.03% at $66.55 a barrel a little while ago.
Data released by the Energy Information Administration (EIA) showed crude inventories in the U.S. rose by 90,000 barrels last week, much less than an expected increase of 659,000 barrels.
The EIA data also showed distillate stockpiles were down 3.342 million barrels last week, while gasoline inventories rose by 92,000 barrels.
The American Petroleum Institute (API) on Tuesday reported an extensive build in crude oil inventories of 4.32 million barrels for the week ending April 23, while analysts had expected a marginal draw in crude oil inventory amid an uptick in refinery demand.
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