Oil prices staged a recovery on Wednesday after U.S. government data showed a big drop in crude and fuel stockpiles as refineries hiked output.
Figures released by the U.S. Energy Information Administration (EIA) showed commercial crude inventories fell by 4.1 million barrels in the week to June 8. Analysts in a poll of economists expected a drop of 2.7 million barrels, while an American Petroleum Institute (API) report on Tuesday suggested inventories rose by 830,000 barrels.
Gasoline stocks fell by 2.3 million barrels, compared with expectations in the same survey for a 443,000-barrel gain. EIA data showed distillate stockpiles, which include diesel and heating oil, fell by 2.1 million barrels, versus expectations for a 200,000-barrel increase.
Benchmark Brent crude was up 40 cents at $76.28 U.S. a barrel mid-morning Wednesday. U.S. light crude rose 14 cents to $66.50.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russia, started withholding output in 2017 to reduce a global supply overhang and prices have risen by around 60% over the last year.
But the outlook for the oil market in the second half of this year is uncertain, analysts say, and OPEC argues there are downside risks to global demand.
OPEC and other producers will meet on June 22-23 in Vienna to discuss future production policy.
