Oil prices soared on Wednesday as traders gauged the possibility of normalizing economic activities and digested the latest data in US crude inventories.
The West Texas Intermediate for June delivery increased $2.72, or 22.04 percent, to settle at $15.06 a barrel on the New York Mercantile Exchange, while Brent crude for June delivery rose $2.08, or 10.17 percent, to close at $22.54 a barrel on the London ICE Futures Exchange.
Expectations on economic normalization rose after encouraging update on a clinical trial for US biopharmaceutical company Gilead Sciences’ experimental coronavirus treatment.
Oil prices were also supported as data showed a smaller-than-expected build in US stockpiles.
US crude oil inventories increased by 9 million barrels during the week ending April 24, the US Energy Information Administration said in a report on Wednesday. That was slightly lower than the average increase of 9.8 million barrels forecast by analysts polled by S&P Global Platts.
Oil prices surge amid hopes for economy reopening
