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Crude oil hits above $40 a barrel, rally continues
Crude oil continued its climb Wednesday from 13-year lows earlier this year.
A barrel of benchmark U.S. crude was up $1.54, or 4 percent, to $38 a barrel. Brent crude, which is used to price international oils, rose $1.24, or 3 percent, to $40.86 a barrel.
The rise came after U.S. crude stockpiles rose in line with estimates last week and gasoline inventories fell more than expected, Reuters reported.
Stocks were moving higher Wednesday on some strong earnings reports and a rise in crude oil prices. Several energy companies are rebounding from big drops the day before.
Crude oil has rallied in recent weeks, but industry watchers remained skeptical of a sustained recovery in prices as the markets are dealing with a massive oversupply.
"Inflationary pressures are non-existent, and so easy money still rules," said Chief Investment Officer Krishna Memani of Oppenheimer Funds, referring to central bank policies.
"We believe this will be one of the longest economic expansions, and thus one the longest bull markets, we have experienced."
The rise in oil prices helped European shares bounce back on Wednesday, even as investors fretted about global economic conditions ahead of central bank meetings on monetary policies.
"It's the same three culprits that have been driving the first two months of the year and that is — central bank policy, China and oil," said Bill Northey, chief investment officer of the private client group at U.S. Bank in Helena, Montana, told Reuters.
Associated Press sources contributed to this report.
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