On the early morning of the 18th Beijing time, US WTI crude oil futures soared 2.5% on Wednesday. The sharp drop in US crude oil inventories and the weakness of the US dollar boosted oil prices.
The futures price of West Texas Intermediate (WTI) crude oil, which was settled in August on the New York Mercantile Exchange, rose by $2.09, or more than 2.52%, to close at $82.85 per barrel, breaking away from the lowest closing level since June 17th.
On Wednesday, the US Energy Information Administration (EIA) reported that US crude oil inventories decreased by 4.9 million barrels during the week ending July 12, far higher than the analyst average expectation of 0.3 million barrels. Prior to this, the unofficial American Petroleum Institute (API) reported a 4.4 million barrel decrease in US crude oil inventories last week.
In addition, the weakening of the US dollar also helped support oil prices. Previously, the US dollar fell to a 17-week low against a basket of other major currencies. This can make commodities priced in US dollars (such as oil) cheaper for holders of other currencies, thereby boosting demand for oil.