Oil futures gave up gains on Wednesday after a report show a larger-than-expected drop in U.S. crude stockpiles, albeit a surprise rise in gasoline inventories.
U.S. commercial crude inventories fell by 6.5 million barrels last week as refineries hiked output, the Energy Information Administration (EIA) reported. That compared with analysts' expectations for a decline of 2.7 million barrels.
But the drop was offset as gasoline stocks rose by 3.4 million barrels, versus a forecast drop of 1.5 million barrels. Weekly data also indicated a weakening in gasoline demand after consumption hit record levels last week.
Brent crude, the global benchmark, was up 36 cents at $52.50 U.S. mid-morning Wednesday, after two straight days of decline. U.S. West Texas Intermediate (WTI) crude were up 33 cents at $49.50 U.S.
Moreover, EIA data showed, distillate stockpiles, which include diesel and heating oil, fell by 1.7 million barrels, versus expectations for a 131,000 barrels drop.
The Organization of the Petroleum Exporting Countries, Russia and other producers are cutting output by about 1.8 million barrels per day (bpd) from Jan. 1 until March 2018.
The deal has so far supported prices but an output recovery in Libya and Nigeria, OPEC members exempt from the cut, has complicated the effort. U.S. shale oil drillers have also accelerated production.
