The West Texas Intermediate (WTI) futures returned above $40 per barrel on Wednesday as it closed $1.32, or 3.3% at $40.83, recovering slightly from its first previous low of below $40 since April.
Oil prices rose 0.3% after an unexpected industry report showed a large drop in gasoline inventories. The Energy Industry Administration presented a surprise 1.4 million barrel drawdown in crude inventories, far from the 900000 barrel forecast, which pushed oil futures to end in bullish remarks.
Brent crude LCOc1 settled up $1.30, or 3.1% to close at $43.10 a barrel, bouncing back from its more than three-month low of $41.51 the previous day.
The big surge
Five weeks after Great Britain’s decision to leave EU, the Brexit-hit sterling has declined to a roughly 10% and is now predicted to fall on a level not seen in three decades.
Sterling is currently trading at 1.33 against US dollar but a median forecast predicted it will fall as low as $1.25 dollar this year, a 6% decline from its recent price. It was steadied on Wednesday but closed 0.32% lower as investors await Bank of England’s (BoE) policy decision. The BoE will give their final verdict on where UK’s interest rate will be set after their meeting that will conclude today.