US Energy Information Administration showed crude oil inventories rose by just 100,000 barrels in the week ended 23 June far short of an expected 800,000 projected by the American Petroleum Institute.
According to the agency crude oil inventories at 509.2 million barrels 'are in the upper half of the average range for this time of the year'.
Oil prices gained respite moving above $44 a barrel and bolstering energy stocks. All indexes rallied with Dow up +0.71%, S&P 500 up +0.88% and technology stocks on Nasdaq clawing back losses after Tuesday's rout. The index jumped +1.43%.
The small-cap index, Russell 2000 was near its 52-week high closing at 1425.27 up 1.55%.
- Dow 21,462 +0.71%
- S&P 500 2,440 +0.88%
- Nasdaq 6,234 +1.43%
- Russell 2000 1,425 +1.55%
- NYSE Composite 11,812 +0.83%
- Gold 1,249.90 0.06%
- Oil WTI $44.68 -0.13%
- 10-Year Treasury 2.22% +0.55%
Crude oil for August delivery rose for the fifth day straight 50 cents, or 1.13% to $44.74. Bond yields also rose with the 10-Year Treasury at 2.22% compared with previous yield of 2.20%. Rising yields have helped financial stocks to advance an aid to bank lending profitability.
Annual stress tests carried out by the Federal Reserve Bank to determine whether the largest banks have enough capital cushion in the event of another severe financial crisis and to carry out their planned distribution of capital to shareholders.
All 34 banks were given the all clear by the Fed and given permission to pay dividends to shareholders or buy back stock.
The upswing in the financial sector helped to stoke S&P 500 comeback rally. Bank of America among the gainers went up +4.00% at $24.20. JP Morgan Chase rose +2.01% and Citigroup surged +3.69%.
Meanwhile technology shares losses on Tuesday were a distant memory, Nvidia climbed +3.53%, Intel up +1.63% and Micron Technology up +1.83%.