Oil surges after EIA report

Brent crude rose $1.09, or 1.1%, to $93.45 per barrel by 12:23 p.m. ET (1723 GMT). Earlier in the day, recession worries had pushed the benchmark price to its lowest since February at $91.51. US West Texas Intermediate crude rose $1.39, or 1.6%, to $87.92 per barrel.

Crude oil prices rose after the EIA crude oil report posted a surprisingly large draw. Oil edged 1% higher after earlier hitting a six-month low on Wednesday, as a steeper than expected draw down in US crude stocks outweighed concerns over rising output in addition to Russian exports and recession fears.

US stockpiles plunged by 7.1 million barrels last week, much more than consensus estimate draw of 100K barrels. It looks like the global demand crude outlook is improving as global recession fears ease.

This oil market is still very tight and since there is limited spare capacity and expectations of a revival of the Iran nuclear deal are dwindling, it looks like oil needs to head higher.

It was a bullish EIA report as US crude exports rose to a record as Europe scrambles for alternatives to Russian oil.