Oil rises on lower U.S. stocks, firmer demand - Reuters

Oil rises on lower U.S. stocks, firmer demand - Reuters:

Oil prices climbed over 3% on Wednesday on signs of improving demand and a drawdown in U.S. crude inventories, but gains were capped by worries over the economic fallout from the coronavirus pandemic and weak refining margins.

Brent crude LCoc1 settled $1.10, or 3.2%, higher at $35.75 per barrel while the new front-month July U.S. crude futures CLc1 ended up $1.53, or 4.8%, at $33.49. Both benchmarks rose more than 5% during the session.

Last month, the May U.S. crude contract sank well below zero ahead of expiry as storage filled rapidly.

U.S. crude inventories fell by 5 million barrels last week, Energy Information Administration data showed, while stocks at Cushing, Oklahoma, delivery hub for U.S. futures dropped by 5.6 million barrels.