Oil prices continued their upward progress on Wednesday, after U.S. government data showed a decline in crude and gasoline stockpiles that exceeded expectations.
The data from the Energy Information Administration showed U.S. commercial crude inventories fell by 4.7 million barrels in the week to July 14, to a total of 490.6 million barrels. Analysts had expected a drop of 3.2 million barrels.
Gasoline stocks also fell more than anticipated, dropping by 4.4 million barrels, compared with expectations in a poll for a 665,000-barrel decline.
Brent crude futures, the international benchmark for oil prices, were up 75 cents, or 1.5%, at $49.59 U.S. per barrel late Wednesday morning. U.S. West Texas Intermediate crude futures rose 77 cents, or 1.7%, to $47.17 U.S. per barrel.
The American Petroleum Institute on Tuesday reported a surprise rise in crude stocks and a whopping 5.4-million-barrel decline in gasoline inventories.
The EIA also reported U.S. oil output continued to tick higher, rising by 32,000 barrels a day in the latest week to break above 9.4 million barrels a day.
Supplies from the Organization of the Petroleum Exporting Countries also remain high, largely due to rising output from member states Nigeria and Libya, appearing to throw a wrench into efforts by the group to re-balance the market.
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