Oil prices rebound after two-month low on Wednesday as the U.S. government reported a ninth straight week of crude inventory declines that erased the expectations of a glut of fuel products in the markets.
U.S. commercial crude stockpiles fell by 2.3 million barrels to a total of 519.5 million barrels, according to the Energy Information Administration (EIA). Meanwhile, Distillate stockpiles, which include diesel and heating oil, fell by 214,000 barrels. U.S. gasoline prices still downing hit a four-month low after the EIA report, while the gasoline stocks surprisingly rose by 911,000 barrels.
U.S. crude for August delivery recently traded up 27 cents, or 0.6%, to $44.92 a barrel on the New York Mercantile Exchange. The August contract expires at settlement, and the more actively traded September contract recently gained 23 cents, or 0.5%, to $45.68 a barrel.
Brent crude, the global benchmark, gained 41 cents, or 0.8%, to $47.07 a barrel on ICE Futures Europe, comparing with that on Tuesday, the contract settled down 30 cents, or 0.6 percent, at $46.66 barrel.
U.S. West Texas Intermediate (WTI) crude was up 20 cents at $44.85 a barrel, having earlier fallen to $43.69, its lowest intraday level since May 10. The August contract expires at the close of trade. The contract for September delivery was up 25 cents at $45.70.
Moreover, the increasing strong dollar presents that greenback-denominated crude more expensive to holders of other currencies and discourages buying.