Oil Surges 6% amid Concerns about Supply Flows

Oil prices surged and closed higher on Wednesday, a day following entering into the correction territory, after an incident in Egypt’s Suez Canal led to concerns about the flow of global crude supplies.

Oil stockpiles in the United States rose last week by 1.9 million, the U.S. Energy Information Administration reported, noting that gasoline inventories grew by 203,000 barrels, while distillates supplies increased by 3.8 million barrels.

Brent crude futures for May delivery gained $3.62, or 6%, to settle at $64.41 per barrel.

Meanwhile, the U.S. West Texas Intermediate (WTI) crude futures finished higher by $3.42, or 5.9%, at $61.18 a barrel.

Worries about the resurgence of the Coronavirus pandemic through a third wave and the consequent lockdown measures in Europe negatively impacted the outlook for demand recovery, which resulted in recent losses for crude oil futures.