Oil prices rose sharply this evening after the US said its crude stockpiles dropped far more than expected last week, indicating a pick-up in demand across the world's biggest consumer.
US crude shot up $1.91 to $76.31 a barrel, while Brent North Sea crude soared $1.59 to $75.05.
The US Department of Energy said crude stockpiles slumped by 4.9 million barrels to 327.5 million in the week ending December 18. Analysts had expected a drop of only 1.1 million barrels.
The DoE added that distillate inventories slid 3.1 million barrels last week, while analyst expectations had been for a fall of 1.6 million barrels.
Data for distillates, which include heating oil, are in focus as winter starts to bite in the US and Europe. Crude futures had already risen on Tuesday as traders bet on improving demand after OPEC decided against changing the cartel's official crude output levels.
