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Crude oil futures end higher as crude inventories drop

26 Nov 2020 Evaluate

Crude oil futures ended higher on Wednesday, extending recent gains, and posted an over 8-month high after data showed a fall in US stockpiles last week. Data released by the Energy Information Administration (EIA) shoed crude inventories in the US dropped by 754,000 barrels last week, as against expectations for an increase of about 127,000 barrels. The EIA data also showed that inventories at Cushing, Oklahoma, declined by 1.7 million barrels last week. Further, continued optimism about coronavirus vaccine and a likely pick-up in energy demand further supported oil's uptick.

Crude oil futures for January rose $0.80 or about 1.8 percent to settle at $45.71 a barrel on the New York Mercantile Exchange. January Brent crude surged $0.48 or 1 percent to settle at $48.34 a barrel on London's Intercontinental Exchange.

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