European markets experienced some relief on Wednesday following the rebound of oil. A drop in crude inventories has caused energy shares to rise. Crude oil inventories in the United States fell by 5.8 million barrels last week, down to 484 million barrels in total. The United States initially forecasted that there would only be a drop of 1.4 million barrels at this time.
The declining oil stock is good news for Europe as the markets have risen greatly in the euro zone on Wednesday.
Royal Dutch Shell PLC (RDSa.L) is up 4.37% on the day, while Chevron (CVX), a United States company, has had its stock rise 2.96% on the day.
European markets are up across the board. The DAX is up 2.28%, the FTSE 100 is up 2.6% and France’s CAC 40 is up 2.34% on the day. Euro Stoxx 50 is up 2.27%, the FTSE MIB rose 1.88% and the IBEX 35 is up 2.39% on the day.
Thyssenkrupp AG O.N. (TKAG) is up 6.73%, E.ON SE NA (EONGn) is up 5.49% and ArcelorMittal SA (ISPA) helped France’s CAC 40 rally after the company’s stock rose 11.08% on the day. Trading is expected to be slow going into the holiday season, and the gains are good news for European stocks going into the new year.