05.08.202019:14:00UTC+00Crude Oil Futures Rise After Inventory Data, Settle At 5-month High

Crude oil prices moved higher on Wednesday, lifted by data showing a sharp drop in U.S. crude inventories in the week ended July 31.

Optimism about U.S. lawmakers agreeing on a coronavirus package, and a weaker greenback too supported oil prices.

Rising worries about the surge in coronavirus cases and the economic impact of the pandemic somewhat limited oil's upside.

West Texas Intermediate Crude oil futures for September ended up $0.49 or about 1.2% at $42.19 a barrel, the highest settlement since March 6.

Brent crude futures moved up $0.70 or about 1.6% to $45.13 a barrel.

According to the data released by Energy Information Administration (EIA) this morning, crude inventories in U.S. dropped by about 7.4 million barrels last week, almost 2.5 times the expected decline.

The EIA data also showed gasoline inventories rose 419,000 barrels last week and distillate fules inventory saw an increase of 1.6 million barrels.

Late on Tuesday, the American Petroleum Institute released a report showing an inventory draw of 8.587 million barrels in the week ended July 31.