Crude oil futures settled higher on Wednesday, extending recent gains. Data showing a larger than expected drop in crude inventories in the U.S. last week pushed up oil prices. Data released by the Energy Information Administration (EIA) showed crude inventories fell by 12.456 million barrels in the week ended May 19. Gasoline inventories fell 2.053 million barrels last week, as against forecasts for a drop of 0.695 million barrels. Meanwhile, distillates stockpiles fell by a modest 0.562 million barrels, as against forecasts for an increase of 0.057 million barrels. Further, Oil prices were also supported by a warning from Saudi Arabia's energy minister on Tuesday that oil prices may not continue to decline.
Benchmark crude oil futures for June delivery surged $1.43 or about 2 percent to settle at $74.34 a barrel on the New York Mercantile Exchange. Brent crude for July delivery rose $1.52 or 2 percent to settle at $78.36 a barrel on London's Intercontinental Exchange.