Crude surges on unexpected drop in crude inventory

Crude oil futures surged on Wednesday to end at a more than one-week high, on getting news that violence escalated in eastern Ukraine amid reports of fierce fighting between government forces and pro-Russian fighters that could lead to probable supply disruptions from Russia. Traders also rejoiced the US Energy Information Administration (EIA) report showing that US crude oil inventories dropped 1.8 million barrels in the week ended May 2. The EIA also reported that total motor gasoline inventories increased by 1.6 million barrels, while distillate stockpiles decreased by 0.4 million barrels. Total US crude oil inventories stood at 397.6 million barrels as of last week. Benchmark crude oil futures for June delivery surged by $1.27 or 1.3 percent to close at $100.77 a barrel after trading in a range of $100.99 and $99.78 a barrel on the New York Mercantile Exchange. In London, Brent oil futures for June delivery gained 0.26 percent to $108.00 a barrel on the ICE.