Oil prices leaped higher on Wednesday

International benchmarks for oil prices jumped higher on Wednesday (19 April) after an EIA report showed a drop in the US distillate inventories by nearly 3.6 million barrels at the week ending 15 April. This has encouraged traders to take a more bullish bet as it is a sign of demand recovery. Another data showed some 2.1 million barrels increased in the crude stockpiles, yet the number has been balanced out with the drawdown in distillate stock. Despite lower production output by 24,000 barrels last week, the US commercial crude inventories still pile up. Analysts are expecting a more lasting reduction in oversupply by second half of this year thanks to a combination of declining U.S. oil production and seasonally stronger demand.

WTI closed at $42.63/b (+$1.55) May delivery

Brent closed at $45.80/b (+$1.77) June delivery