Oil prices are popping after inventory report shows huge draw

Oil futures are up after inventory numbers were lower than Wall Street expectations.

US crude inventories were down 6.299 million barrels, according to the most recent Energy Information Administration report. That was a much larger fall than Wall Street’s expectations of a draw of 2.283 million.

The price of West Texas Intermediate futures was up by 2.61%, and Brent oil futures were up a similar 2.55%.

Oil has seen a bit of a bump recently, growing 2.25% over the last week. The upward trend was headed higher before Bloomberg reported Tuesday that Russia was opposed to further OPEC production cuts.

A new report showing huge US government subsidies for fossil fuel companies came out on Wednesday. The report found that the US government provided about $US6 billion annually in financial support to the oil, gas, and coal industries between 2013 and 2015.

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