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WTI oil futures rally to 4-month high after bullish supply data

Published 04/15/2015, 10:36 AM
© Reuters.  U.S. oil futures rally to 4-month high after weekly supply report
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Investing.com - West Texas Intermediate oil futures rose to the highest levels of the session on Wednesday, after data showed that oil supplies in the U.S. rose less than expected last week.

On the New York Mercantile Exchange, crude oil for May delivery rallied $1.68, or 3.15%, to trade at $54.97 a barrel during U.S. morning hours, the highest level since January 2. Prices were at around $54.06 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 1.3 million barrels in the week ended April 10, below expectations for an increase of 4.1 million barrels.

Total U.S. crude oil inventories stood at 483.7 million barrels as of last week, the most in at least 80 years, underling concerns over a supply glut.

The report also showed that total motor gasoline inventories decreased by 2.1 million barrels, compared to expectations for a drop of 0.2 million, while distillate stockpiles rose by 2.0 million barrels.

A day earlier, Nymex oil jumped $1.38, or 2.66%, to close at $53.29 amid speculation an ongoing collapse in rigs drilling for oil in the U.S. will result in lower production.

U.S. oil futures have been well-supported in recent sessions amid mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery tacked on $1.26, or 2.12%, to trade at $61.07 a barrel after hitting a daily high of $61.19, a level not seen since March 6. On Tuesday, London-traded Brent prices rose 77 cents, or 1.3%, to settle at $59.81.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $6.10 a barrel, compared to $6.52 by close of trade on Tuesday.

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