By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Crude-oil futures rose sharply Wednesday, after American Petroleum Institute data showed U.S. supplies fell more than expected last week and as stock markets gained in line with investors’ hopes over efforts to combat the euro-zone crisis.
Crude for July delivery CLN2 +1.28% jumped $1.20, or 1.6%, to $85.47 a barrel in European trading hours.
Late Tuesday, updated inventories data compiled by trade group API showed distillate stocks climbed by 1.8 million barrels and gasoline inventories rose 1.4 million barrels last week.
July gasoline RBN2 +0.97% added 3 cents, or 1.1%, to $2.72 a gallon.
The API’s figures come ahead of closely watched U.S. Energy Information Administration report due Wednesday. Analysts polled by Platts have pegged a 1 million-barrel decrease in weekly crude stockpiles.
Ahead of the API data, July crude settled Tuesday at $84.29 a barrel in New York trading, a gain of 31 cents on the session.
Global stock markets rose and U.S. stock futures climbed in anticipation of a meeting of the European Central Bank, and as investors weighed progress on addressing the euro zone’s debt problems. Spanish banks surged in Madrid on reports in a German newspaper that the European Financial Stability Facility may be allowed to lend money to Spain’s bank rescue fund, helping it get closer to a recapitalization plan for the sector.
As expected, the European Central Bank made no change in interest rates at its policy meeting. Analysts will be listening closely to a press conference that Mario Draghi, president of the central bank, will hold shortly.
Gold was also sharply higher, as the dollar pulled back.
In the U.S., data on tap include the release of first-quarter productivity and unit labor costs data at 8:30 a.m. Eastern. The Fed’s Beige Book report on the U.S. economy is scheduled for release at 2 p.m. Eastern.
Among other energy contracts Wednesday, July heating oil HON2 +1.49% rose 4 cents to $2.68 a gallon.
July natural gas NGN12 -0.41% was flat at $2.45 per million British thermal units.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
