Oil prices rose 3% to their highest level in a week, as hopes for an improvement in global economic prospects and concerns about the impact of sanctions on Russian crude production overshadowed a sudden and large increase in US crude inventories.
Brent crude futures rose $2.57, or 3.21%, to $82.67 a barrel upon settlement, and US West Texas Intermediate crude rose $2.29, or 3.05%, to close at $77.41 a barrel upon settlement.
The two benchmarks are at the highest level since January 3, with US crude rising for the fifth consecutive day for the first time since October 2022, and Brent rising for the third day in a row for the first time since December 2022.
Moreover, the Energy Information Administration announced a jump in US crude oil inventories by 19 million barrels last week, which is the largest weekly gain since a record rise of 21.6 million barrels in February 2021.
This compares with a 2.2 million-barrel drop in crude inventories in a Reuters poll, but is more in line with American Petroleum Institute data showing an increase of 14.9 million barrels.