Oil Futures Settle Higher As Data Shows Drop In Crude Inventories

Crude oil prices moved higher on Wednesday after data showed a drop in U.S. crude inventories in the week ended April 15.

Concerns about supplies from Russia and the disruptions in Libya also contributed to the uptick in oil prices.

Worries about the outlook for energy demand following a downward revision in the global growth forecast by the International Monetary Fund (IMF) pushed down oil prices in the previous session.

West Texas Intermediate Crude oil futures for June ended higher by $0.14 or about 0.1% at $102.19 a barrel.

West Texas Intermediate Crude oil futures for May ended with a gain of $0.19 or about 0.2% at $102.75 a barrel on the expiration day.

Brent crude futures were down $0.37 or 0.33% at $106.88 a barrel.

Data from Energy Information Administration (EIA) showed crude inventories in the U.S. dropped by 8 million barrels last week versus expectations for an increase of 2.5 million barrels.

Gasoline inventories fell by 761,000 barrels last week to 232.4 million barrels, while distillate stockpiles dropped by 2.7 million barrels to 108.7 million barrels, the lowest level since May 2008.

According to a report from Reuters, OPEC and its allies produced 1.45 million barrels of oil a day in March, below its production targets, due largely to the decline in Russian crude oil output in the face of sanctions imposed by the West and some European nations.

Oil also found support as reports said some factories are returning to work after Shanghai reported no new COVID-19 infections outside quarantine areas in two districts.

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