<p>Oil settled up more than $2 on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a US interest rate hike.</p>.<p>US crude oil stockpiles dropped 4.5 million barrels last week as exports surged to an all-time high due to US crude's big discount to international benchmark Brent, the Energy Information Administration said.</p>.<p>Brent crude rose $2.22, or 2.1%, to $106.62 a barrel. US West Texas Intermediate (WTI) crude gained $2.28, or 2.4%, to $97.26.</p>.<p>After a sharp drop in the last two weeks, US gasoline demand rebounded by 8.5% week on week, according to the data.</p>.<p>"All talk about demand destruction stopped in its tracks in this report...the situation has changed dramatically in two weeks," said Bob Yawger, director of energy futures at Mizuho.</p>.<p>Oil also continued to climb after the US Federal Reserve decided, as expected, to raise its benchmark overnight interest rate by three-quarters of a percentage point in an effort to cool the most intense inflation since the 1980s.</p>.<p>"From here, oil could ride the wave of some increased risk appetite for a few sessions especially if the dollar weakens further," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.</p>.<p>Oil has soared in 2022, reaching a 14-year high of $139 a barrel in March after Russia's invasion of Ukraine added to supply worries and as demand recovered from the pandemic.</p>.<p>Since then, concerns of economic slowdown and rising interest rates have weighed, despite supply outages in Libya and Nigeria and cuts in Russian gas flows to Europe.</p>.<p>Gas flows through the Nord Stream 1 pipeline fell to a fifth of the pipeline's capacity on Wednesday, while Italy's Eni said it will receive lower volumes from Russia's Gazprom.</p>
<p>Oil settled up more than $2 on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a US interest rate hike.</p>.<p>US crude oil stockpiles dropped 4.5 million barrels last week as exports surged to an all-time high due to US crude's big discount to international benchmark Brent, the Energy Information Administration said.</p>.<p>Brent crude rose $2.22, or 2.1%, to $106.62 a barrel. US West Texas Intermediate (WTI) crude gained $2.28, or 2.4%, to $97.26.</p>.<p>After a sharp drop in the last two weeks, US gasoline demand rebounded by 8.5% week on week, according to the data.</p>.<p>"All talk about demand destruction stopped in its tracks in this report...the situation has changed dramatically in two weeks," said Bob Yawger, director of energy futures at Mizuho.</p>.<p>Oil also continued to climb after the US Federal Reserve decided, as expected, to raise its benchmark overnight interest rate by three-quarters of a percentage point in an effort to cool the most intense inflation since the 1980s.</p>.<p>"From here, oil could ride the wave of some increased risk appetite for a few sessions especially if the dollar weakens further," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.</p>.<p>Oil has soared in 2022, reaching a 14-year high of $139 a barrel in March after Russia's invasion of Ukraine added to supply worries and as demand recovered from the pandemic.</p>.<p>Since then, concerns of economic slowdown and rising interest rates have weighed, despite supply outages in Libya and Nigeria and cuts in Russian gas flows to Europe.</p>.<p>Gas flows through the Nord Stream 1 pipeline fell to a fifth of the pipeline's capacity on Wednesday, while Italy's Eni said it will receive lower volumes from Russia's Gazprom.</p>