Crude oil futures gained 1 percent on Wednesday as the weakening of US dollar resulted in higher demand and supply of crude oil. As per the latest report of the Energy Information Administration oil inventories increased by 600,000 barrels for the week ended May 20^th while analysts were expecting a drop of 1.6 million barrels in crude oil supplies.

Crude oil futures contract for July delivery surged 1.2 percent of $1.14 to $100.75 per barrel on New York Mercantile Exchange after reaching the high of $101.10 per barrel.

EIA also reported the increase of 3.8 million barrels in gasoline inventories while distillate supplies surged by 2 million barrels. Analysts were expecting gasoline inventories to surge by 750,000 barrels and forecasted increase of 500,000 barrels in distillates.

The dollar index DXY which measures the US dollar’s performance against its major six rival currencies declined to 75.855 on Wednesday as compared to 75.915 on Tuesday’s North American trading session. This resulted in price hike in crude oil futures

Managing member Tariq Zahir from Tyche Advisors in New York commented, “The lower dollar trumped the bearish inventories data, oil’s strength is likely to be “short-lived” as it “looks to have come on the back of the US dollar pulling back slightly from its highs.”

Gasoline futures contract for June delivery slightly gained by $0.01 to $3 per gallon while heating oil futures contract for June delivery soared 2.1 percent or $0.06 to $2.97 per gallon.

Natural gas futures contract for June delivery surged 0.4 percent or $0.02 to $4.36 per million British thermal units.