China is a major importer of Iraqi oil. (Photo : Reuters)
Brent crude oil forecast to increase 5 percent on Wednesday as soon as Saudi Arabia's Oil Minister disclosed that oil demands increases and records showed that the Chinese factories are producing more than expected.
Falling refined products inventories that were conveyed by the government had aided to boost US crude and countered data showing huge figures than expected from the US crude inventory build.
Brent April crude LCOc1 rose $2.97 to stay at $61.63 a barrel. U.S. April crude CLc1 rose $1.71 to stay at $50.99.
John Kilduff, partner at Again Capital LLC, explained that the report was relatively bullish in spite of the huge crude oil inventory build, Reuters reported.
The US crude stocks increased by 8.4 million barrels the previous week to record 434.07 million the Energy Information Administration (EIA) explained on Wednesday. Adding 2.4 million barrels from Cushing, Oklahoma, delivery point for the U.S. crude contract.
The small gain at Cushing could have helped open the path between Brent and U.S. crude CL-LCO1=R to its broadest since January 2014, with Brent's premium nearing $11 a barrel.
US gasoline stocks fell around 3.1 million barrels, more than what the analysts have thought it would, while it concentrate on stocks which included diesel and heating oil fell around 2.7 million barrels which is lesser than what was expected, according to Yahoo! News.
U.S. March RBOB gasoline RBH5 rose around 9.85 cents to stay at $1.7187 per gallon and March ultra-low sulfur diesel HOH5 surged around 7.47 cents to $2.1036 per gallon.
