Investing.com - West Texas Intermediate oil futures extended overnight gains in North America trade on Wednesday, after data showed that oil supplies in the U.S. fell more than expected last week.
Crude oil for August delivery on the New York Mercantile Exchange jumped $1.00, or 2.09%, to trade at $48.85 a barrel by 14:34GMT, or 10:34AM ET. Prices were at around $48.53 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 4.1 million barrels in the week ended June 24. Market analysts' expected a crude-stock decline of 2.4 million barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 3.9 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 951,000 barrels last week, the EIA said. Total U.S. crude oil inventories stood at 526.6 million barrels as of last week.
The report also showed that gasoline inventories increased by 1.4 million barrels, compared to expectations for a gain of 58,000 barrels, while distillate stockpiles decrease by 1.8 million barrels.
A day earlier, New York-traded oil rallied $1.52, or 3.28%, as worries about the U.K.’s shock decision to leave the European Union abated, boosting appetite for riskier assets.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 93 cents, or 1.89%, to trade at $50.19 a barrel, after surging $1.49, or 3.12%, on Tuesday.
Oil got a further boost amid concerns over supply disruption in Norway, where about 7,500 workers on seven oil and gas fields could go on strike from Saturday if a new wage deal is not agreed before a Friday deadline.
The affected fields account for nearly 18% of Norway's oil output, hitting production from the North Sea's top producer.