Oil prices gained a bit more steam on Wednesday after U.S. government data showed crude stocks plunged more than expected last week, this, as imports declined and drillers continued to pump more.
Data from the Energy Information Adminstration (EIA) says crude inventories dropped off by 7.6 million barrels last week, compared with analysts' expectations for an decrease of 2.9 million barrels.
Brent crude was up 45 cents, or 1% at $47.97 U.S. a barrel late Wednesday morning. U.S. crude gained 63 cents, or 1.4% to $45.67 U.S.
Gasoline stocks fell by 1.6 million barrels, compared with analysts' expectations for a 1.1-million-barrel gain. The EIA data showed distillate stockpiles, which include diesel and heating oil, rose by 3.1 million barrels, versus expectations for a 1.1 million barrels increase.
U.S. oil production ticked up by 59,000 barrels a day to nearly 9.4 million barrels a day.
Moreover, the EIA said on Tuesday it expected U.S. crude oil production to rise by less than previously forecast next year due to a lower price outlook.
The lower 2018 forecast of 9.9 million barrels per day will ease concerns that the supply cut by the Organization of the Petroleum Exporting Countries will lead to a flood of competing U.S. shale supplies, swamping the OPEC effort.
