Crude oil futures sharply higher on Wednesday after data showed a larger than expected drop in US crude inventories in the week ended December 16. Data from Energy Information Administration (EIA) showed crude inventories in the U.S. fell by 5.89 million barrels last week, more than 3.5 times the estimated decline of 1.66 million barrels. The American Petroleum Institute’s report on Tuesday showed a decrease of 3.1 million barrels of crude oil in US inventories last week versus an expected drop of 1.7 million barrels. Besides, hopes about China relaxing some of its Covid-19 curbs also contributed to the jump in oil prices.
Benchmark crude oil futures for February delivery gained $2.06 or 2.7 percent at $78.29 a barrel on the New York Mercantile Exchange. Brent crude for February surged $2.21 or 2.76 percent to settle at $82.20 a barrel on London's Intercontinental Exchange.