Crude oil futures gained on Wednesday in reaction to decrease in inventories data and uncertainty over US employment conditions.

According to the latest data of the Energy Information Administration, crude oil inventories fell 4.7 million barrels for the week ending September 30^th, 2011 whereas analysts expected the oil stock piles to increase by 2.5 million barrels for the respective week. EIA reported the decline of 1.1 million barrels gasoline inventories whereas analysts expected gasoline supplies to increase by 1.3 million barrels.

Distillates inventories with includes heating oil and diesel dropped by 700,000 barrels for the week while analysts expected the decline of 500,000 barrels.

Crude oil futures contract for November delivery gained 5.3 percent or $4.01 to settle at $79.68 per barrel on the New York Mercantile Exchange. Gasoline futures contract for the same month also jumped 3.3 percent or $0.08 to $2.78 per gallon on Wednesday.

Managing member, Tariq Zahir from Tyche Advisors in New York commented, “The declines gave a headline bullish case for the energy complex, while the headline number was bullish we do feel a new range has been set up between ($75 and $80 a barrel). We feel any rally up ($80 a barrel) in the energy sector will be short lived.”