Oil prices reached 2016 highs on Wednesday, just days after oil-producing countries failed to strike an output freeze deal. Meanwhile, many market watchers considered that an oil-worker strike in Kuwait was propelling crude prices, but even after the Kuwait oil and gas industry called the strike off, prices went even higher.
Still, this may not be the cause of higher prices. According to Genscape's Brian Busch, "one of the things that really turned the market today is [that] for the first time, if you net out crude and distillate, we saw the first true draw of the two together," he said in an interview with CNBC's "Power Lunch," on Wednesday.
The director of oil markets and business development also noted that there's a strong sentiment in the market for higher oil prices.
As news emerged that the Kuwait strike ceased, oil prices dipped, only to surge amid new data from the U.S. Energy Information Administration, which said that crude stocks rose 2.1 million barrels last week, compared with Reuters' analysts forecasts of a 2.4 million-barrel build and industry group American Petroleum Institute's data showing a 3.1 million-barrel rise.