Oil posts double-digit gains after U.S. crude storage build slows - Reuters

Oil posts double-digit gains after U.S. crude storage build slows - Reuters:

Oil prices surged more than 10% on Wednesday after U.S. crude stockpiles grew less than expected and gasoline posted a surprise draw, feeding optimism that fuel consumption will recover as some European countries and U.S. state ease coronavirus lockdowns.

Crude prices crashed earlier this month, with global fuel tanking roughly 30% due to efforts to slow the spread of the virus. To ease the growing glut, major oil producing-nations agreed in mid-April to cut output by nearly 10 million barrels per day. Shale producers and oil majors are also reducing production.

U.S. West Texas Intermediate (WTI) crude futures settled at $15.06 a barrel, jumping $2.72, or 22%. Brent crude futures settled at $22.54 a barrel, up $2.08, or 10.2%.

U.S. crude oil inventories swelled by 9 million barrels last week to 527.6 million barrels, about 7 million barrels below their record high, the Energy Information Administration said. The build was slightly less than the 10.6 million-barrel rise analysts had expected in a Reuters poll.