USA crude inventories fell by 1.4 million barrels (Mmbbl) during the week ended April 12, compared with analysts' expectations for an increase of 1.7 Mmbbl, according to a Reuters survey.
Oil prices rose 1 percent on Tuesday, as fighting in Libya and falling Venezuelan and Iranian exports raised concerns over tightening global supply, but uncertainty surrounding an OPEC-led production cut limited gains.
Brent crude futures rose 28 cents to $71.90 a barrel around 8:15 a.m. ET (1215 GMT), near Wednesday's five-month high of $72.27 a barrel.
Gasoline stockpiles fell by 3.6 million barrels, the API said, more than forecasts of a 2.1 million-barrel drop. This came after three consecutive weeks of gains as it appeared that demand was slipping just as OPEC+ cuts were starting to bite. That comes after they previously agreed to crimp output by 1.2 million barrels per day (bpd) from January 1 for six months.
US government data is due to be released today Wednesday.
What can be expected from the oil market today?
Oil markets fell on Thursday despite a surprise decline in US inventories, but the price drops were tempered by a smaller-than-expected reduction in gasoline stocks and ongoing Organisation of Petroleum Exporting Countries (OPEC)-led supply cuts.
Brent oil hit a 2019 high above $72 a barrel on Wednesday, propelled by steady economic growth in China and a fall in USA crude stocks which defied expectations and signaled firm demand, while global supply remained tight.
Prices have been supported this year by an agreement reached by OPEC and its allies, including Russian Federation, to limit their oil output by 1.2 million barrels per day. Brent saw a weekly gain of 0.6 percent, marking the fourth consecutive weekly rise for the worldwide benchmark.
The general tendency is upward.
U.S. crude oil output from seven major shale formations was expected to rise by about 80,000 bpd in May to a record 8.46 million bpd, the U.S. Energy Information Administration said in its monthly report on Monday.
ICE MGO up 4 usd/mton and NY Habor Ulsd up 6 usd/mton.
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