Oil climbs on U.S. distillates inventories' drop

U.S. crude oil price climbed above 100 dollars a barrel on Wednesday as U.S. distillates inventories dropped unexpectedly last week.

Following a hefty bounce in the previous day, crude prices extended the gains after the release of the U.S. energy weekly report. According to data from the U.S. Energy Information Administration, distillates inventories, including heating oil and diesel fuel stocks, fell sharply by 2.0 million barrels to 141 million barrels in the week ended May 20, registering the weakest reading since April 2009.

Distillates' drop overshadowed a larger-than-expected 3.8- million-barrel increase in gasoline inventories and an unexpected gain of 0.6 million barrels in crude inventories.

In the oil-reach Middle East and North Africa, violence intensified in Yemen and NATO launched more fierce airstrikes against Libya. Geopolitical concerns also lifted the crude.

Light, sweet crude for July delivery gained 1.73 dollars, or 1. 74 percent, to settle at 101.32 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for July delivery also rose and last traded around 115 dollars a barrel.

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