Crude oil futures settled higher on Wednesday after data showed a drop in US crude inventories in the week ended October 15. Data from the US Energy Information Administration (EIA) showed US crude stockpiles dropped by 431,000 barrels last week, against expectations for an increase. The data said gaeoline stockpiles declined by over 5.37 million barrels in the week, while distillate stocks dropped by 3.91 million barrels. The EIA data also said inventories at the Cushing, Oklahoma delivery hub dropped to the lowest level in three years. Besides, increased demand for oil due to the ongoing energy crunch in several countries including China contributed as well to the uptick in oil prices. Meanwhile, Saudi Arabia's energy minister said users switching from gas to oil could account for demand of 500,000 - 600,000 barrels per day.
Benchmark Crude oil futures for December delivery rose $0.98 or 1.2 percent to settle at $83.42 barrel on the New York Mercantile Exchange. Brent crude for December delivery surged $0.61 or 0.72 percent to settle at $85.69 a barrel on London's Intercontinental Exchange.