Oil Surges With U.S. Data Underscoring Brighter Global Outlook - Bloomberg

Oil Surges With U.S. Data Underscoring Brighter Global Outlook - Bloomberg

• West Texas Intermediate for May rose $3.05 to $63.23 a barrel at 12:53 p.m. in New York
• Brent for June settlement gained $3 to $66.67 a barrel

Oil jumped the most since late March with declining U.S. crude stockpiles and rising fuel demand providing the spark needed to break out of a nearly monthlong price range.

Futures climbed as much as 5.3% in New York on Wednesday, pushing prices out of a recent $5 trading range to the highest intraday level since March 18. A U.S. government report showed domestic crude inventories fell by 5.89 million barrels last week, the biggest decline in two months, bringing nationwide supplies to the lowest since late February. A gauge for gasoline demand ticked higher for a seventh straight week.

“The crude draw and the very slight increase in gasoline inventories speaks to the whole setup of recovering demand and balancing inventories,” said Quinn Kiley, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “It’s a stark difference compared to this time last year. We’re seeing the real contrast between what it looks like in a poor demand scenario a year ago versus a recovery scenario today.”