On Wednesday, oil prices increased as much as 1%, lifting U.S.crude from two month lows, after the U.S. government stated a ninth straight week of crude inventory draws, lessening some worries in a market concerned about an oversupply.
The Energy Information Administration stated crude inventories dropped 2.3 million barrels in the week to July 15, near analysts' anticipations for a decline of 2.1 million barrels.
Gasoline stocks increased 911,000 barrels, compared to predictions for stocks to stay unchanged.
Stocks of the motor fuel rallied regardless of gasoline output falling 168,000 bpd even as refinery crude runs upsurge 319,000 barrels per day, the Energy Information Administration data presented.
"We continue to see these builds in gasoline which suggest the market is fundamentally not sound to sustain a rally," said Tariq Zahir, a trader in West Texas Intermediate crude spreads at Tyche Capital Advisors in New York.
Brent crude's front month agreement, settled up 51 cents or 1% at $47.17 a barrel.
U.S. West Texas Intermediate crude's August deal expired as the front month after increasing 29 cents, or 0.7%, to settle at $44.94 a barrel. August West Texas Intermediate touched a two month low of $43.69 before. Meanwhile, September West Texas Intermediate front month from Thursday onwards, also settled up 0.7%.
Brent's premium against West Texas Intermediate hit its widest since the end of April, improving U.S. crude's export probability.
U.S. gasoline (RBc1) dropped approximately 1%, to settle at $1.3637 per gallon. It hit a March low of $1.3381 earlier.
Oil prices have increased approximately 75% since hitting 12-year lows of almost $27 for Brent, and nearly $26 for West Texas Intermediate in the first quarter. The rally stalled after the two benchmarks breached the $50 psychological barrier in May amid concerns that higher prices will add to the production.
In the prior week, Kyle Cooper, an analyst at IAF Advisors in Houston stated, “Absolute inventories rose to yet another new all-time record” referring to the 2.1 billion barrels of total petroleum supply, as well as strategic reserve stocks, cited by the Energy Information Administration.”
"Next week may see an increase in refined product output," he added.