Crude prices soared on Wednesday as the dollar continued weakening and the U.S. crude inventories dropped surprisingly, Xinhua reported.
Oil rose Wednesday as the dollar fell against the euro, the British pound and other major currencies. The dollar index was down nearly 1 percent. The dollar has been slipping since Standard & Poor's lowered its outlook for U.S. debt this week. A weaker U.S. currency supported dollar-priced oil to rise.
The Energy Information Administration reported that U.S. crude stocks unexpectedly declined 2.3 million barrels in the week ended April 15. Analysts expected an increase of 1.6 million barrels. Gasoline supplies also fell by 1.6 million barrels last week.
The report showed that gasoline demand dropped due to high fuel prices. Gasoline pump prices keep rising nevertheless. The national average price increased slightly on Wednesday to 3.837 dollars per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular is 28.8 cents higher than it was a month ago and 97.8 cents higher than a year ago.
Meanwhile, the traders and investors remained concerned about the situation in the Middle East.
Light, sweet crude for June delivery surged 3.17 dollars, or 2. 93 percent to settle at 111.45 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery also rose and last traded around 124 dollars a barrel.