Energy markets bid up Crude Oil after US supplies declined more than expected.
EIA reported a steep drawdown in US crude stocks, but another buildup in refined gasoline.
Cold weather hampered Crude oil logistics, China stimulus expected to drive demand higher.
Crude Oil markets climbed on Wednesday, sending West Texas Intermediate (WTI) into its highest bids in almost six weeks after the Energy Information Administration (EIA) revealed a steeper-than-expected drawdown in US barrel supplies.
China is expected to add additional stimulus to the domestic Chinese economy and reduce the reserve requirements for local banks in an effort to jumpstart flagging business activity. Barrel traders expect the additional business spending to pump up demand for Crude Oil in China.
The EIA reported a surprise drawdown of over 9 million barrels of US Crude Oil Inventories, owing in large part to a recent cold snap that limited logistics and deliveries in several key areas. Despite the drawdown in Crude Oil supplies, energies are shrugging off another surprise buildup in gasoline inventories of 4.913 million barrels of refined gasoline versus the forecast 2 million barrel buildup, adding even further to the previous week’s 3.083 million barrels.
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