Investing.com - West Texas Intermediate oil futures added to sharp gains in North America trade on Wednesday, after data showed that oil supplies in the U.S. rose less than expected last week.
Crude oil for May delivery on the New York Mercantile Exchange rallied $1.49, or 3.89%, to trade at $39.77 a barrel by 14:34GMT, or 10:34AM ET. Prices were at around $39.41 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 2.3 million barrels in the week ended March 25. Market analysts' expected a crude-stock rise of 3.3 million barrels, while the American Petroleum Institute late Tuesday reported a supply gain of 2.6 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 272,000 barrels last week, the EIA said, compared to forecasts for a gain of 300,000 barrels.
Total U.S. crude oil inventories stood at an all-time high of 534.8 million barrels as of last week.
The report also showed that gasoline inventories decreased by 2.5 million barrels, compared to expectations for a drop of 2.2 million barrels, while distillate stockpiles fell by 1.1 million barrels.
Since falling to 13-year lows at $26.05 on February 11, U.S. crude futures have rebounded by approximately 45% as a decline in U.S. shale production boosted sentiment. However, analysts warned that market conditions remained weak due to an ongoing glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery jumped $1.42, or 3.56%, to trade at $41.27 a barrel, as continued hopes major oil producers will discuss a potential output freeze lifted prices.
OPEC member Iran is expected to attend an oil producers meeting in Doha on April 17 to discuss an output freeze, although it may not necessarily partake in negotiations.
Brent futures are up by roughly 45%, since briefly dropping below $30 a barrel on February 11. Short-covering began in mid-February after Saudi Arabia and fellow OPEC members Qatar and Venezuela agreed with non-OPEC member Russia to freeze output at January levels, provided other oil exporters joined in.
Meanwhile, Brent's premium to the WTI crude contract stood at $1.50 a barrel, compared to a gap of $1.57 by close of trade on Tuesday.