Oil prices jumped about 3% on Wednesday after the U.S. government reported crude inventories fell unexpectedly for the first time since March, adding to concerns over supply disruptions in Alberta and Nigeria.
Data released by the U.S. Energy Information Administration (EIA) showed crude inventories fell 3.4 million barrels last week, compared with analysts' expectations for an increase of 714,000 barrels. Moreover, the American Petroleum Institute's (API) reported a build of 3.5 million barrels Tuesday.
Gasoline stocks also fell 1.2 million barrels, and distillate fuel inventories were down 1.6 million barrels.
International Brent crude oil futures were up $1.62, or 3.6%, at $47.14 U.S. per barrel Wednesday. U.S. West Texas Intermediate (WTI) crude futures were up $1.33, or 3%, at $45.99 U.S. a barrel.
Oil sands companies around Fort McMurray began to restart operations on Tuesday after an out-of-control wildfire forced a week-long shutdown. Alberta provincial and industry officials said production in much of the region should ramp up soon.
The fires in Canada's oil sands field region have knocked out around 1.5 million barrels of daily crude production, leading to a significant tightening of global markets.
What's more, the EIA, in a separate report on Wednesday, said it expected Brent to rebound in the next year to about $76.00 a barrel on continued increase in demand.
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