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Oil prices skyrocket after sharp US crude inventories draw

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Oil prices traded higher on Wednesday after the release of a report showing a more than forecast drawdown in U.S. crude stockpiles last week. 

The Energy Information Administration (EIA) report signaled a draw by 9.9 million barrels in U.S. crude inventories in the week ended June 22, the largest drop since September 2016, following a 5.9 million-barrel decrease a week earlier. Analysts had estimated a fall by 2.4 million barrels.

U.S. crude stocks were down by 9.228 million barrels last week, according to industry report released by the American Petroleum Institute (API) late Tuesday.

A report due on Friday by oilfield services company Baker Hughes will provide an update on the number of rigs drilling for oil in the United States.

Crude oil futures traded higher at $72.59 a barrel after opening today at $70.69, marking the highest level since May 22. Brent crude futures traded higher at $77.93 a barrel.

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