(RTTNews) – Crude oil futures showed a notable move to the upside during trading on Wednesday, regaining ground following a recent sell-off.
After closing lower for five consecutive sessions, crude for July delivery jumped $0.82 or 1.1 percent to $74.07 a barrel.
The rebound may have reflected indications the oil market has become oversold, as crude tumbled to its lowest levels in four months after OPEC+ decided to gradually phase out voluntary production cuts beginning in October.
Optimism about the outlook for interest rates may also have contributed to the turnaround by crude oil, as data showed signs of weakness in the labor market.
Meanwhile, traders largely shrugged off a report from the Energy Information Administration showing crude oil inventories unexpectedly rebounded in the week ended May 31st.
The report said crude oil inventories rose by 1.2 million barrels last week after tumbling by 4.2 million barrels in the previous week.
Gasoline inventories also increased by 2.1 million barrels last week, while distillate fuel inventories, which include heating oil and diesel, jumped by 3.2 million barrels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
