Crude oil futures ended sharply higher on Wednesday as crude stockpiles fell and tensions remained high in the Middle East. Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. tumbled by 3.7 million barrels last week, after slumping by 3.4 million barrels in the previous week. Crude inventories were forecast to edge down by 0.4 million barrels. Meanwhile, private report said that Israel has been bracing for an expected attack from Iran after the assassination of Hamas leader Ismail Haniyeh in Tehran last week. White House officials told The Washington Post that Iran may be reconsidering a major strike on Israel amid diplomatic pressure and the dispatch of U.S. military assets to the region.
Benchmark U.S. crude oil futures for September delivery rose $2.03 or about 2.75% to $75.23 per barrel on the New York Mercantile Exchange. Brent crude for October delivery gained $1.85 or about 2.42% to $78.33 per barrel on London's Intercontinental Exchange.