Brent crude oil futures surged 5 percent on Wednesday, after Saudi Arabia’s oil minister said oil demand was growing and data showed Chinese factories were producing more than expected. Falling refined products inventories reported by the government helped lift U.S. crude and countered data showing a larger-than-expected U.S. crude inventory build.
Brent April crude LCOc1 rose $2.97 to settle at at $61.63 a barrel. U.S. April crude CLc1 rose $1.71 to settle at $50.99. “The report is relatively bullish, despite the large crude oil inventory build,” said John Kilduff, partner at Again Capital LLC.
“The draw downs in the refined product categories represent an offset and are supportive,” Kilduff added. U.S. crude stocks rose 8.4 million barrels last week to a record 434.07 million, the Energy Information Administration (EIA) said on Wednesday, adding 2.4 million barrels at Cushing, Oklahoma, delivery point for the U.S. crude contract.
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