Crude oil futures ended sharply higher on Wednesday amid hopes about the outlook for demand in the U.S. and forecasts for a drawdown in U.S. crude stocks last week. A private report estimated that a drop of about 400,000 barrels of crude stocks in the U.S. in the week to June 16. Meanwhile, Traders also noted the hawkish comments from Fed Chair Jerome Powell, who reiterated before the House Financial Services Committee that the central bank is likely to continue raising rates to contain inflation. The central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6% by the end of 2023.
Benchmark crude oil futures for July delivery rose $2.03 or about 2.79 percent to settle at $72.53 a barrel on the New York Mercantile Exchange. Brent crude for August delivery surged $1.22 or 1.60 percent to settle at $77.12 a barrel on London's Intercontinental Exchange.