Oil prices fell toward session lows Wednesday, after U.S. government data showed a smaller drop in crude inventories than the market had counted on.
Figures released by the U.S. Energy Information Administration showed commercial crude inventories fell by 1.5 million barrels in the week through July 28. Analysts were reportedly expecting inventories to fall by three million barrels last week.
U.S. West Texas Intermediate (WTI) crude were down 53 cents, or 1.1%, to $48.63 per barrel mid-morning Wednesday.
Brent crude, the international oil benchmark, was down 39 cents at $51.39 U.S. per barrel. The price hit $52.93 on Monday, its highest since late May.
Gasoline stocks fell by 2.5 million barrels, compared with analysts' expectations for a 636,000-barrel drop. The EIA data showed distillate stockpiles, which include diesel and heating oil, declined by 150,000 barrels, against expectations for a 525,000-barrel fall.
Brent crude also came under pressure from reports this week showing production from the Organization of the Petroleum Exporting Countries (OPEC) at a 2017 high of 33 million barrels per day (bpd). That is despite OPEC's pledge to restrict output along with other non-OPEC producers, including Russia, by 1.8 million bpd between January this year and March 2018.
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