Oil futures climbed higher Wednesday morning, after a U.S. government report said crude supplies dropped much more than expected last week.
The Energy Information Administration reported a 9.9-million-barrel decline in crude stockpiles for the week ended July 5. Analysts polled by Platts were looking for a 3.8-million-barrel decline.
The American Petroleum Institute late Tuesday had reported a nine-million-barrel drop. Gasoline supplies also fell by 2.6 million barrels, while distillate stockpiles increased by three million barrels, the EIA said.
Gasoline stockpiles were expected to rise by 1.2 million barrels, while forecasts called for an increase of 1.4 million barrels for distillates.
Following the latest data, August crude traded at $105.42 U.S. a barrel, up $1.89, or 1.8%. It was trading around $105.04 U.S. shortly before the report.
