Investing.com - Crude oil futures remained sharply higher on Wednesday, holding on to strong gains after a report from the U.S. government showed that oil supplies fell significantly more-than-expected last week.
Oil prices also drew support following the release of upbeat U.S. employment data and amid growing concerns political unrest in Egypt would spread to major oil-producing countries in the Middle East.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD101.67 a barrel during U.S. morning trade, up 2.1% on the day.
Prices traded at USD101.45 a barrel prior to the release of the supply data.
New York-traded oil prices rose by as much as 2.5% earlier in the session to hit a daily high of USD102.16 a barrel, the strongest level since May 4, 2012.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 10.3 million barrels in the week ended June 28, compared to expectations for a decline of 2.3 million barrels.
Total U.S. crude oil inventories stood at 383.8 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 1.7 million barrels, confounding expectations for an increase of 0.6 million barrels.
Also Wednesday, payroll processor ADP said that the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.
Separately, the U.S. Department of Labor said of people who filed for unemployment assistance last week fell by 5,000 to a seasonally adjusted 343,000, compared to expectations for a drop of 3,000 to 345,000.
Another report showed that service sector activity in the U.S. grew at a slower rate than expected in June.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 52.2 in June from 53.7 in May, compared to expectations for an increase to 54.0.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Meanwhile, oil prices received an additional boost after Egyptian President Mohammed Morsi rebuffed the military’s ultimatum to comprise with protesters or relinquish power on Tuesday.
Market players were concerned that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the U.S.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rose 1.5% to trade at USD105.55 a barrel, with the spread between the Brent and crude contracts standing at USD3.88 a barrel, the narrowest level since December 2010.
The gap between the contracts has been on the decline in recent weeks, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.
Oil prices also drew support following the release of upbeat U.S. employment data and amid growing concerns political unrest in Egypt would spread to major oil-producing countries in the Middle East.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD101.67 a barrel during U.S. morning trade, up 2.1% on the day.
Prices traded at USD101.45 a barrel prior to the release of the supply data.
New York-traded oil prices rose by as much as 2.5% earlier in the session to hit a daily high of USD102.16 a barrel, the strongest level since May 4, 2012.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 10.3 million barrels in the week ended June 28, compared to expectations for a decline of 2.3 million barrels.
Total U.S. crude oil inventories stood at 383.8 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 1.7 million barrels, confounding expectations for an increase of 0.6 million barrels.
Also Wednesday, payroll processor ADP said that the U.S. private sector added 188,000 jobs in June, more than expectations for an increase of 160,000.
Separately, the U.S. Department of Labor said of people who filed for unemployment assistance last week fell by 5,000 to a seasonally adjusted 343,000, compared to expectations for a drop of 3,000 to 345,000.
Another report showed that service sector activity in the U.S. grew at a slower rate than expected in June.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 52.2 in June from 53.7 in May, compared to expectations for an increase to 54.0.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Meanwhile, oil prices received an additional boost after Egyptian President Mohammed Morsi rebuffed the military’s ultimatum to comprise with protesters or relinquish power on Tuesday.
Market players were concerned that the escalating tensions would lead to the closure of the Suez Canal, which transports approximately 2 million barrels of crude oil a day from northern Africa to the U.S.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery rose 1.5% to trade at USD105.55 a barrel, with the spread between the Brent and crude contracts standing at USD3.88 a barrel, the narrowest level since December 2010.
The gap between the contracts has been on the decline in recent weeks, amid an improving production outlook in the North Sea and indications of declining stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures.