Crude oil futures ended higher on Wednesday after data showed a much larger than expected drop in U.S. crude inventories in the week ended June 28th. Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. plunged by 12.2 million barrels last week, after climbing by 3.6 million barrels a week earlier. Street had expected crude oil inventories to edge down by 0.2 million barrels. Oil prices were also supported by a weak dollar. The greenback shed ground amid bets the Federal Reserve will likely cut interest rate in September.
Benchmark U.S. crude oil futures for August delivery surged $1.07 or about 1.29% to $83.88 per barrel on the New York Mercantile Exchange. Brent crude for September delivery rose $1.10 or 1.3% to $87.34 per barrel on London's Intercontinental Exchange.