Energy commodities surged on Wednesday despite stronger US Dollar and continuous global growth concerns. EIA report release and hot weather forecasts in the US provided support for the commodity group.
Crude oil soared after EIA reported that US crude oil inventories declined much more than expected last week. However, crude oil came under pressure as worries over supply disruptions from Norway eased.
Brent oil moved higher, being well-supported by recently launched embargo on Iranian oil exports. At the same time, the upswing was capped by persistent global demand fears.
Natural gas skyrocketed on abnormally warm weather forecasts in the US. Meanwhile, traders are cautious ahead of the EIA supply report due on Thursday.
Heating oil eased up after EIA report indicated smaller than expected increase in the US distillate fuel inventories. Currently, distillate fuel supplies are below the lower limit of average range for this time of the year.