Oil prices surged on Thursday with the WTI crude rising around 14 per cent on indications that fuel demand in the US is starting to pick up and the supply glut in the world’s largest economy is not rising at the anticipated pace.
The June delivery contract of WTI on the NYMEX is currently trading at $ 17.15 per barrel, higher by 13.88 per cent from the previous close.
The June contract of Brent on the Intercontinental Exchange (ICE) was at $24.25 per barrel, higher by 7.59 per cent
According to data from the US Energy Information Administration released on Wednesday, US crude inventories rose by nine million barrels last week to 527.6 million barrels, below the anticipated rise of over 10 million barrels.
The rise in the oil prices comes after the recent freefall on concerns of decline in the storage capacity as supply continues and demand remains nearly standstill.
Last week in an unprecedented price movement, the WTI crude fell below zero for the first time ever.