U.S. crude-oil futures settled higher Wednesday after a U.S. supply report showed a smaller-than-expected increase in crude inventories.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December rose $1.49, or 1.9%, to settle at $78.68 U.S. a barrel. That snapped a four-session losing streak that took prices to their lowest in three years. It was also oil’s largest one-day gain in nearly two weeks.
December Brent crude on London’s ICE Futures exchange gained 13 cents, or 0.2%, to finish at $82.95 U.S. a barrel. That put an end to four straight sessions of losses that had sent Brent to a four-year low on Tuesday.
The Energy Information Administration, on Wednesday, said U.S. supplies rose 500,000 barrels on the week ended Oct. 31. Analysts polled by Platts had expected an increase by 1.2 million barrels for the week.
The EIA also reported gasoline supplies declined by 1.4 million barrels, and supplies of distillates decreased by 700,000 barrels. The analysts surveyed by Platts had expected gasoline inventories to decline 200,000 barrels and stockpiles of distillates, which include heating oil, to fall by 1.1 million barrels.
The supply figures lifted, at least temporarily, concerns about a supply glut in oil, and was enough to spur buying.
Major oil contracts were hit hard Tuesday by news that Saudi Arabia adjusted prices for its oil sold in the U.S. Weak economic data from Europe also weighed on the market, analysts said.
