Crude oil futures ended higher on Wednesday, magnifying their previous session’s rally, amid hopes of higher demand from China. Oil prices rose despite data showing an increase in U.S. crude inventories last week. Data from U.S. Energy Information Administration (EIA) showed crude inventories in the U.S. rose by 2.423 million barrels in the week ended February 1, in line with expectations. The EIA data also showed gasoline inventories increased 5 million barrels last week, about four times the expected surge. Meanwhile, distillate stockpiles rose by 2.932 million barrels as against expectations for an increase of 0.097 million barrels.
Benchmark crude oil futures for March delivery rose $1.33 or 1.7 percent at $78.47 a barrel on the New York Mercantile Exchange. Brent crude for April delivery surged $1.40 or 1.7 percent at $85.09 (Provisional) a barrel on London's Intercontinental Exchange.