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Crude shoots up as U.S. stockpiles take a dive

Published 07/16/2014, 02:36 PM
Updated 07/16/2014, 02:37 PM
Bullish supply report, Chinese data send oil prices jumping

Investing.com - Crude futures shot up on Wednesday after data revealed U.S. inventories took a nosedive last week, while upbeat Chinese growth figures also bolstered the commodity.

In the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in August traded up 1.32% at $101.28 a barrel during U.S. trading. New York-traded oil futures hit a session low of $99.95 a barrel and a high of $101.39 a barrel.

The August contract settled down 0.94% at $99.96 a barrel on Tuesday.

Nymex oil futures were likely to find support at $99.01 a barrel, Tuesday's low, and resistance at $104.20 a barrel, the high from July 8.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 7.5 million barrels in the week ended July 11, far surpassing expectations for a decline of 2.1 million barrels.

Total U.S. crude oil inventories stood at 375.0 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 0.2 million barrels, below forecasts for a gain of 0.6 million barrels, while distillate stockpiles rose by 2.5 million barrels, above expectations for an increase of 1.7 million barrels.

Upbeat growth data in China, the world's second-largest consumer of crude, also boosted the commodity.

Official data released earlier showed that China's economy expanded at an annual rate of 7.5% in the second quarter, above expectations for growth of 7.4%.

A separate report showed that industrial production in China rose by an annualized rate of 9.2% in June, compared to expectations for a 9% increase, after an 8.8% gain in the previous month.

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Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for September delivery were up 0.27% and trading at US$107.18 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$5.90 a barrel.

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