On Wednesday West Texas Intermediate oil futures jumped to the highest level of 2015 amid speculation weekly supply data due later in the session will signal U.S. crude inventories rose at a slower pace than expected last week.
The government report due on Wednesday was expected to show that U.S. crude oil stockpiles rose by 1.5 million barrels last week, while gasoline stockpiles were forecast to increase by 0.9 million barrels.
On the New York Mercantile Exchange, crude oil
for June delivery hit an intraday peak of $61.67 a barrel, the most
since December 11, before trading at $61.39 during European morning
hours, up 98 cents, or 1.63%. A day earlier, Nymex oil prices jumped
$1.47, or 2.49%, to end at $60.40.
On the ICE Futures Exchange in London, Brent oil
for June delivery rallied 80 cents, or 1.18%, to trade at $68.32 a
barrel after touching a daily high of $68.65, a level not seen since
December 8. On Tuesday, London-traded Brent futures rose $1.07, or
1.61%, to close at $67.52.
The spread between the Brent and the WTI crude contracts stood at $6.93 a barrel, compared to $7.12 by close of trade on Tuesday.
The American Petroleum Institute, an industry group, said on Tuesday that U.S. crude inventories fell by 1.5 million barrels in the week ended May 1. The report also showed that supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, declined by 336,000 barrels.
U.S. oil futures are up nearly 30% since hitting a five-year low of $43.57 on January 29 amid mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months amid an ongoing collapse in rigs drilling for oil.
The number of rigs drilling for oil in the U.S. fell by 24 last week to 679, the 21st straight week of declines and the lowest level since September 2010, industry research group Baker Hughes indicated.
Investors anticipated the ADP report on private sector jobs growth for April later in the day, as well as a speech by Federal Reserve Chair Janet Yellen, which would be closely watched for any indications on the timing of the first hike in interest rates.
Traders also awaited Friday's U.S. nonfarm payrolls report for further clues on when the Fed may raise interest rates.
