Crude oil futures settled significantly higher on Wednesday with gains of over 2% on the back of prospects of higher demand and amid optimism over U.S. debt ceiling negotiations. The International Energy Agency (IEA) said in its report expects demand would outpace supply by 2 million barrels per day in the second half of the year, with China contributing up to 60% of oil demand growth. Meanwhile, data released by the Energy Information Administration (EIA) showed crude inventories in the U.S. rose by 5 million barrels in the week ended March 12. The EIA data showed gasoline stocks dropped by 1.38 million barrels last week, while distillate stockpiles increased by 0.080 million barrels.
Benchmark crude oil futures for June delivery rose $1.97 or about 2.8 percent to settle at $72.83 a barrel on the New York Mercantile Exchange. Brent crude for July delivery gained $2.05 or about 2.7 percent to settle at $76.97 a barrel on London's Intercontinental Exchange.