Crude oil lost most of its earlier gains Wednesday after industry data showed a larger than expected drop in U.S. crude inventories.
Brent crude gained 1%, to $60.63 U.S. a barrel, after settling 0.5% higher on Tuesday, while U.S. crude was up 0.4%, at $56.36 a barrel.
Data released Wednesday by the Energy Information Administration showed U.S. crude inventories fell by 2.7 million barrels from the week prior. Analysts estimated a decrease of 1.9 million barrels.
Analysts maintain EIA data is more closely watched than usual given the nearing of the end of peak U.S. driving season.
Data released Tuesday by the American Petroleum Insitute revealed that U.S. crude oil stocks fell by 3.5 million barrels in the week to Aug. 16. Analysts had expected a fall of 1.9 million barrels.
Tensions in the Middle East remained in the spotlight as U.S. Secretary of State Mike Pompeo said on Tuesday the United States would take every action it can to prevent an Iranian tanker in the Mediterranean from delivering oil to Syria in contravention of U.S. sanctions.
Traders are also awaiting this week’s annual U.S. central bank seminar in Jackson Hole, where comments from Federal Reserve Chief Jerome Powell will be in focus.
