Crude futures jump on EIA data showing oil glut may be easing

Author: Lane Kelley


Crude futures jump on EIA data showing oil glut may be easingHOUSTON (ICIS)--NYMEX crude futures for June delivery settled at $58.58/bbl on Wednesday, up $1.52 on weekly data from the Energy Information Administration that showed US crude stocks rose less than expected last week, suggesting the oil glut may be starting to ease.

US benchmark crude prices jumped to a four-month high following the EIA report showing stockpiles at the nation’s largest storage hub, in Cushing, Oklahoma, fell for the first time since November.

WTI reached a high of $59.33, the highest since mid-December. Prices for the US benchmark in April appear headed toward the biggest monthly gain since May 2009, up more than 20% so far this month.

Oil prices have rebounded from a six-year low in March fueled by speculation that a drilling slowdown will drain excess supply. But the rebound may be short-lived if higher prices encourage producers to resume drilling.

Distillate stocks showed an unexpected draw, but that was offset by a larger build on gasoline than forecast.