Crude oil prices surged on Wednesday as markets starting hoping the demand from China would soon be reflected in the world's oil markets. Price pressures also increased amidst reports that western sanctions caused Russia's crude output to slump in April.
Supply concerns were also exacerbated by the latest data from the American Petroleum Institute that showed crude inventories in the U.S. falling by 2.445 million barrels in the week ended May 13, 2022.
Inventories had increased by 1.618 million barrels in the previous week and markets were expecting a 1.533 million barrels increase in the recent week.
Data from the U.S. Energy Information Administration for the same period is due later in the day.
Brent Oil Futures for July settlement is currently trading at $113.90, up 1.76 percent from Tuesday's close of $111.93. The day's trade ranged between a high of $115.69 and a low of $111.09.
West Texas Intermediate (WTI) Crude Oil Futures for July settlement on Wednesday traded between a high of $112.39 and a low of $110.05. It is currently trading at $112.17, having increased 2.32 percent from Tuesday's close of $109.63.
