Oil rebounds 2 percent on surprise draw in supply

Oil prices stripped a five-day losing streak and rebounded to above 85 U.S. dollars on Wednesday as U.S. crude inventory surprisingly fell last week.

Light, sweet crude for May delivery gained 1.79 dollars to settle at 85.84 dollars a barrel on the New York Mercantile Exchange. Crude futures rose to as high as 86.39 dollars a barrel during trading.

U.S. Energy Department Energy Information Administration reported on Wednesday that crude stockpiles fell by 2.2 million barrels, while analysts had forecasted a gain of 1.6 million barrels. The report also showed that gasoline inventories declined by 1.1 million barrels, more than average forecast for a decrease of 600,000 barrels.

Oil prices began to move upward even before the inventory report as strong earnings results and retail sale data reassured investors' confidence in a slow yet steady economic recovery.

In London, Brent crude for May delivery rose 1.44 dollars to 86. 16 dollars a barrel on the ICE Futures Exchange.

Source:Xinhua