Crude prices rebounded on Wednesday as U.S. gasoline inventories for last week dropped to the lowest level since October 2011.
After a severe plunge in the previous trading day, there was also technical request for the rebound. And the report from the U. S. Energy Information Administration (EIA) offered further support for the bounce.
According to the EIA, the U.S. gasoline inventories fell by 7 million barrels in the week ended April 8, the biggest weekly drop since October 1998, to 209.7 million barrels, the lowest level since October last year. And the national average gasoline price climbed to 3.79 dollars a gallon last week.
The sales at U.S. retailers rose 0.4 percent in March, registering the ninth consecutive monthly increase, according to a report released by the Commerce Department on Wednesday. This was a positive sign for the U.S. economy and also offered support for the oil markets.
Meanwhile, the U.S. crude inventories rose by 1.6 million barrels to 359.3 million barrels, posting the sixth straight gain and helping pull down crude futures briefly around midday.
The oil prices also felt pressure after the U.S. dollar strengthened against major currencies, with the dollar index rising about 0.1 percent.
Light, sweet crude for May delivery gained 86 cents to settle at 107.11 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for May delivery rose 1.96 dollars, or 1.62 percent, to settle at 122.88 dollars a barrel.
