Oil prices made their above $50.00 U.S. a barrel on Wednesday after government data showed a surprise drop in crude inventories, counteracting skepticism over a planned output cut by the Organization of the Petroleum Exporting Countries
Data released Wednesday by the U.S. Energy Information Administration (EIA) said U.S. commercial crude stockpiles fell by 553,000 barrels in the week ended Oct. 21. Analysts forecast a 1.7-million barrel build.
In a preliminary inventory report on Tuesday, trade group American Petroleum Institute (API) said U.S. crude stocks rose 4.8 million barrels in the week up to Oct. 21.
The data extended the trend of unexpected draws seen in U.S. crude stocks in six of the past seven weeks.
Crude stocks generally rise at this time of year as refineries go into maintenance. EIA data showed refinery crude runs rose by 182,000 barrels per day. Refinery utilization rates rose by 0.6 percentage points.
Gasoline stocks fell by two million barrels, compared with analysts' expectations for a one-million-barrel drop.
Prices had been depressed earlier in the session by producers' verbal jockeying over planned output cuts by OPEC. Iraq does not want to join in with a proposed production cut that the group has said it will approve at a regular meeting in Vienna next month.
Traders and investors are growing less confident about OPEC's chances of securing an effective agreement to curb output as more members say they want to be excluded from the deal.
