U.S. crude-oil futures bounced back sharply Wednesday, rebounding from a five-year low after data showed crude inventories declined, although less than forecast.
Light, sweet crude futures for delivery in January rose $2, or 3.6%, to $57.93 U.S. a barrel on the New York Mercantile Exchange. Oil had traded as low as $54.21 U.S. in earlier action, its lowest level since May 2009. Prices rose by two cents in the previous session, snapping a four-day losing streak.
Oil rebounded after the U.S. Energy Information Administration reported a smaller-than-expected decline in U.S. crude supplies in the week ended Dec. 12.
February Brent crude on London’s ICE Futures exchange rose $2.30, or 3.8%, to $62.31 U.S. a barrel after it also plumbed a five-year low in earlier action.
Crude inventories declined by 800,000 barrels in the week ended Dec. 12, the EIA said earlier Wednesday. Analysts polled by Platts had expected a decline of 2.5 million barrels.
Strategists said sellers appeared exhausted after a sharp plunge in crude accelerated this week.
The EIA also reported gasoline supplies rose by 5.3 million barrels, and inventories of distillates, which include heating oil, declined by 200,000 barrels. The analysts surveyed by Platts had expected gasoline inventories to rise by 2.3 million barrels, and distillate stocks to be up by 670,000 barrels.
Elsewhere in energy trading, gasoline for January delivery rose 3.6% to $1.5960 U.S. a gallon on the Nymex. January heating oil gained 3.8% to $2.0348 U.S. a gallon on the Nymex.
