Oil prices rose on Wednesday after the U.S. government in Washington reported a drop in the nation's crude stockpiles.
Benchmark Brent crude oil rose 60 cents to $76.55 U.S. a barrel mid-morning Wednesday. U.S. light crude was up 78 cents, or 1.1% at $69.31 a barrel.
Figures released Wednesday by the U.S. Energy Information Administration (EIA) revealed crude inventories fell by 2.6 million barrels in the week to Aug. 24, compared with analysts' expectations for a decrease of 686,000 barrels.
Gasoline stocks fell by 1.6 million barrels, compared with analysts' expectations for a 370,000-barrel gain. Distillate stockpiles, which include diesel and heating oil, fell by 837,000 barrels, versus expectations for a 1.6 million-barrel increase, the EIA data showed.
To stem tumbling output, Venezuelan state-run oil firm PDVSA said on Tuesday it had signed a $430-million investment agreement to increase production by 640,000 bpd at 14 oilfields, although some analysts doubted whether this investment would go through given the instability in the country.
Despite the risk of disruption, especially from the Organization of the Petroleum Exporting Countries members like Venezuela, Iran, Libya and Nigeria, Bank of America Merrill Lynch said global supply could climb towards the end of the year.
