Petroleum prices rose to session highs on Wednesday after government data in the U.S. showed a larger-than-anticipated drop in crude inventories as imports stateside fell and refineries continued to run near full capacity.
Data released Wednesday by the U.S. Energy Information Administration revealed crude inventories declined by 5.8 million barrels in the last week, compared with analysts' expectations for an decrease of 1.5 million barrels.
Brent crude, the international benchmark, rose $1.80, or 2.5%, to $74.43 U.S. a barrel. U.S. crude gained $1.73, or 2.6%, to $67.57 U.S.
Crude stocks at the Cushing, Oklahoma delivery hub rose by 772,000 barrels.
Gasoline stocks rose by 1.2 million barrels, compared with analysts' expectations for a 488,000-barrel drop. EIA data showed distillate stockpiles, which include diesel and heating oil, jumped by 1.8 million barrels, versus expectations for a 1.5-million-barrel increase.
The prospect of a drop in oil exports from Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries, in response to new U.S. sanctions is also supporting the market.
OPEC has started to boost supplies following a deal with Russia and other allies in June, although producers have been cautious so far. Saudi Arabia told OPEC it cut supply in July, rather than increasing output as expected.
