West TX Oil Surges to $94 on Stockpile Plunge

U.S. oil prices ended nearly $2 higher on Wednesday, after government data showed a larger-than-expected drop in inventories, while gains in Brent were capped by expectations for increased Iranian and Libyan supply.

The rally was exacerbated by the nearing expiration of both oil contracts which forced traders to buy contracts and cover positions.

Ultra low-sulfur diesel futures rose to a more than one-week high after the U.S. government reported stocks of distillates, which include heating fuel and diesel, fell as the market expected supplies to grow. Gasoline inventories saw a surprisingly large build as arctic-like weather last week kept drivers off the road.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.