* EIA reports 4.9 million barrels draw in U.S. stocks last
week
* Analysts in Reuters poll had expected 3.2 mln-barrel build
(New throughout, updating market activity and comments after
EIA data)
By Barani Krishnan
NEW YORK, April 6 (Reuters) - Oil prices surged by 4 percent
or more on Wednesday after the U.S. government reported a
surprise draw in domestic crude stockpiles last week, versus
market expectations for a new record high.
The U.S. Energy Information Administration (EIA) said crude
stocks unexpectedly fell by 4.9 million barrels in the last week
as refineries continued to hike output and imports fell. EIA/S
Analysts polled by Reuters had expected inventories to hit
record highs for an eight straight week with a build of 3.2
million barrels.
U.S. crude futures CLc1 were up $1.60, or 4.4 percent, at
$37.49 a barrel by 11:20 a.m. EDT (1520 GMT).
Brent futures LCOc1 rose by $1.45 to $39.32.
"I think the market is more about the total change in
inventories, rather than individual components," said Scott
Shelton, energy broker with ICAP (LON:IAP) in Durham, North Carolina.
"It's the first week of the second quarter and we have a net
draw. That will force the bears to rethink their bearish
balances for Q2."
Refinery crude runs USOICR=ECI , which have remained at
record seasonal levels for most of this year thanks to unusually
strong gasoline margins, rose by 199,000 barrels per day, EIA
data showed. Refinery utilization rates USOIRU=ECI rose by 1
percentage point, although usage could ebb with more maintenance
expected this month.
"For refiners, they see a market with strong demand for
gasoline and decent profit margins. I expect they will begin
ramping up in order to capture the sweet spot of high volume and
high margins for as long as it lasts," said David Thompson,
executive vice-president at energy-specialized commodities
broker Powerhouse in Washington.