Oil prices extended gains on Thursday after government data showed a larger-than-expected drop in U.S. crude inventories as refinery activity increased and crude imports fell.
Brent crude futures for August were up 63 cents, or 1.2%, at $51.39 a barrel during noon hour ET, after earlier rising to $51.44. U.S. West Texas Intermediate crude futures were up 78 cents, or 1.6%, at $49.10 a barrel.
Data released Thursday by the U.S. Energy Information Administration showed that commercial crude inventories fell by 6.4 million barrels in the week to May 26, compared with analyst expectations for a decrease of 2.5 million barrels. The EIA report, which is routinely issued on Wednesday, was delayed by a day due to the Memorial Day holiday.
Gasoline stocks fell by 2.9 million barrels, compared with analysts' expectations in an economists' poll for a 1.1-million-barrel drop.
Meanwhile, the EIA added, distillate stockpiles, which include diesel and heating oil, rose by 394,000 barrels, versus expectations for a 755,000-barrel drop.
Oil futures were bolstered in early morning trade by expectations the United States could pull out of a global climate accord and by inventory data ahead of the EIA report that suggested U.S. crude stockpiles had fallen by 8.7 million barrels.
The U.S. inventories data provided some relief after a week of negative news on the global supply-demand balance.
The contracts fell about 3% to three-week lows on Wednesday after a survey of economists' showed an increase in Libyan oil production had helped to boost May crude output by the Organization of the Petroleum Exporting Countries, the first monthly rise this year.
