Crude oil futures settled notably higher on Wednesday, recovering well after an early setback, after the Biden administration said it would not ask U.S. oil producers to hike output.
Reports that a White House official called the OPEC+ to boost production faster than the current pace of 400,000 barrels per month pushed oil prices lower early on in the session.
Traders also digested data showing a smaller than expected drop in U.S. crude inventories in the week ended August 7.
West Texas Intermediate Crude oil futures for September ended up by $0.96 or about 1.4% at $69.25 a barrel, coming well off the day’s low of $66.67 a barrel.
Brent Crude futures are currently up $0.84 or 1.2% at $71.47 a barrel.
Data released by U.S. Energy Information Administration (EIA) this morning showed crude inventories in the country dropped by 400,000 barrels last week, lower than an expected decline of about 600,000 barrels.
Gasoline inventories dropped by 1.4 million barrels last week, lower than an expected drop of 2.4 million barrels, while distillate stockpiles increased by 1.8 million barrels as against an an expected drop of 600,000 barrels.
On Tuesday, the American Petroleum Institute had released a report saying crude inventories in the U.S. fell by 816,000 barrels last week.
Inventories at Cushing, Oklahoma, the delivery hub for Nymex oil futures, fell 413,000 barrels while distillate stocks rose 673,000 barrels, the report said.