23.10.201919:08:00UTC+00Oil Futures End Sharply Higher On Surprise Drop In Stockpiles

Crude oil futures rose sharply and settled at near 1-month high on Wednesday after data showed an unexpected decline in crude inventories in the U.S. last week.

Recent reports about OPEC and allies' plan to increase output cuts next year contributed as well to oil's sharp uptick. OPEC and other non-members are set to meet in early December to discuss production cuts beyond March 2020.

West Texas Intermediate Crude oil futures for December ended up $1.49, or about 2.7%, at $55.97 a barrel, the highest settlement in nearly a month.

Brent crude oil futures for December were up $1.39, or 2.3% in late afternoon trades.

On Tuesday, WTI Crude oil futures for December ended up $0.97, or 1.8%, at $54.48 a barrel.

Data released by the Energy Information Administration this morning showed crude inventories in the U.S. dropped by about 1.7 million barrels in the week ended October 18, as against expectations for a rise of over 2.2 million barrels.

According to a report released by the American Petroleum Institute late Tuesday, U.S. crude stockpiles rose by 4.45 million barrels in the week ended October 18, compared with analysts' expectations for a gain of 2.2 million barrels.

Gasoline stockpiles were down 3.1 million barrels last week, notably higher than an expected drop, and distillate stockpiles dropped by 2.72 million barrels, almost in line with forecasts.