Crude oil futures ended sharply higher on Thursday on weak U.S. dollar and the passage of the debt ceiling bill in the House of Representatives. Further, oil prices were also supported on hopes OPEC and its allies will announce a cut in production. However, oil prices drifted down earlier in the day after data showed a large build in inventories and on concerns about the outlook for energy demand after data showed manufacturing activity slowed in several countries. Data released by the Energy Information Administration (EIA) showed crude inventories increased by 4.5 million barrels in the week ended May 26, as against expectations for a draw of around 1.1 million barrels.
Benchmark crude oil futures for July delivery rose $2.01 or 3 percent to settle at $70.10 a barrel on the New York Mercantile Exchange. Brent crude for August delivery surged $1.68 or 2.3 percent to settle at $74.28 a barrel on London's Intercontinental Exchange.