Crude-oil futures closed sharply higher Wednesday as a report from the Energy Information Administration showed a drop in U.S. crude inventories, and favorable geopolitical developments appeared to clear possible roadblocks to further demand for energy assets. February West Texas Intermediate oil CLG21, +0.37% CL.1, +0.37% rose $1.10, or 2.3%, to settle at $48.12 a barrel on Wednesday, ending a two-session slump for crude.
Reports that a trade pact may be reached by Britain and the European Union have also helped support oil prices, experts said.