Oil futures were in a rally in in yesterday’s session, but ended the session with its biggest single session gains since December after the release of the U.S. government data that shows the biggest weekly decline in the domestic crude supplies this year.
The U.S. Information Administration reported that domestic crude supplies dropped by 5.2 million barrels for the week which was noticeably larger than the 1.8 million forecasted barrels by analysts.
Matt smith, the director of commodity research at ClipperData, explained that the drop in crude inventories is closely related to the poor weather conditions in the Mexican gulf this weekend which disrupt the imports which resulted to a 6.4 million drop in oil barrels.
With that in consideration, the June West Texas Intermediate crude futures was up by $1.45 or at least 3.2% and was pegged at $47.33 per barrel in the New York Mercantile Exchange. This was the highest one-day dollar and percentage increase since December 1.
While July Brent Crude added $1.49 to its prices or an equivalent to 3.1% pinning the oil prices at $50.22 per barrel in London’s ICE futures exchange which regained the $50 mark for the first time in a week.
Other energy news includes June natural gas which was also in positive positions which added 2% to $3.292 per million British thermal unit, which was ahead EIA’s weekly update Thursday on supplies of the commodity.