Crude oil futures ended higher on Wednesday on optimism about increased demand from China after announcement of stimulus. In China, the People's Bank of China said it will cut the amount of cash that banks must hold as reserves from February 5, freeing up an estimated 1 trillion yuan ($140 billion) to the market. Further, oil prices also climbed on data showing a larger-than-expected decline in U.S. crude inventories. Data released by U.S. Energy Information Administration (EIA) showed crude inventory dropped by 9.2 million barrels in the week ended January 19th, more than four times the expected declined of 2.2 million barrels.
Benchmark crude oil futures for February delivery rose $0.72 or 1 percent to settle at $75.09 a barrel on the New York Mercantile Exchange. Brent crude for March delivery gained $0.49 or 0.6 percent to settle at $80.04 a barrel on London's Intercontinental Exchange.