Oil prices had some spring in their step midday Wednesday after U.S. government data confirmed a larger-than-expected fall in U.S. crude inventories as refineries cut output.
The Energy Information Administration reported that U.S. commercial crude inventories fell by 5.2 million barrels to a total of 522.5 in the week through May 5.
The American Petroleum Institute reported Tuesday stockpiles fell by 5.8 million barrels last week, more than the 1.8 million-barrel slide analysts predicted.
As a result, global benchmark Brent crude was up $1.24, or 2.5% at $49.97 U.S. a barrel mid-morning Wednesday. U.S. light crude oil was $1.28, or 2.8% higher at $47.16 U.S. a barrel.
EIA also reported gasoline stocks fell by 150,000 barrels, compared with analysts' expectations for a 538,000 barrel-drop. API had reported a build in U.S. gasoline stockpiles on Tuesday.
Gasoline demand also perked, as U.S. gasoline futures were up 2.4% after the report.
The EIA data also showed distillate stockpiles, which include diesel and heating oil, fell by 1.6 million barrels, versus expectations for a one-million-barrel decline.
Oil was also buoyed by media reports on Wednesday that Saudi Arabia would cut crude supplies to Asia.
State-owned Saudi Aramco will reportedly reduce oil supplies to Asian customers by about seven million barrels in June, as part of the Organization of the Petroleum Exporting Countries' agreement to reduce production.
