CRUDE OIL SURGES NEAR USD50 AS INVENTORIES PLUNGE

Oil-Field
WASHINGTON (Alliance News) – Crude oil futures surged near the psychologically important USD50 a barrel mark Wednesday, as official data confirmed a significant draw down in US oil inventories.

The US Energy Information Administration reported that US crude supplies fell 4.2 million barrels for the week ended May 20.

July WTI oil settled at USD49.56/bbl, up 94 cents, or 1.9% — the highest level since Oct. 9

Earlier this week, Baker Hughes said that the number of active US rigs drilling for crude was unchanged at 318 after falling over the last eight weeks in a row.

That’s a sign that US oil companies think oil will get above USD50, making production more profitable.

Copyright RTT News/dpa-AFX

 

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