Crude oil futures ended sharply higher on Wednesday as crude inventories in the U.S. dropped in the week ended January 10th. Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. dropped by 2 million barrels last week, after falling by 1 million barrels in the previous week. Street had expected crude oil inventories to decrease by 1.6 million barrels. Further, possibility of supply disruptions due to new sanctions by the U.S. on Russia contributed as well to the rise in oil prices.
Benchmark crude oil futures for February rose $2.54 or about 3.3 percent to settle at $80.04 a barrel on the New York Mercantile Exchange. Brent crude for March delivery surged $2.11 or about 2.65 percent to settle at $82.03 a barrel on London's Intercontinental Exchange.