Energy commodities were bullish on Wednesday on brighter demand prospects as the Fed may launch monetary stimulus program in the nearest future. Moreover, a tropical storm threat in the Caribbean region created additional support for energy prices.
Crude oil jumped after the Fed hinted on monetary easing. Adding to the gains of the commodity, US crude oil supplies dropped by 5.4 million barrels last week.
Brent oil moved up amid falling US inventories and persistent supply concerns from the Middle East, North Sea and Caribbean region.
Natural gas surged 1.84% after the US National Hurricane Center announced that tropical storm is moving towards Leeward Islands in the Caribbean Sea. Meanwhile, market participants also anticipated US storage data due on Thursday.
Heating oil followed an upward trend despite slight increase in US distillate fuel inventories last week. Currently, US distillate fuel supplies are below the lower limit of the average range for this period of the year.