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U.S. crude prices topped $65 a barrel for the first time in more than three years on Wednesday after government data showed the tenth straight weekly drop in U.S. stockpiles of crude oil.
U.S. West Texas Intermediate crude futures rose 68 cents, or 1.1 percent, to $65.15 a barrel, hitting the highest levels since Dec. 8, 2014, when they hit $65.55 a barrel. International benchmark Brent crude also reversed earlier losses, rising 17 cents to $70.13, near a three-year high set last week.
Oil prices turned higher after the U.S. Energy Information Administration reported that U.S. commercial crude stockpiles fell by 1.1 million barrels to 411.6 million barrels in the week through Jan. 19.
That was below analyst estimates for a drop of 1.6 million barrels in a Reuters poll, but the report eased traders’ worries after industry data released on Tuesday suggested that stocks rose by 4.8 million barrels.
The report was further evidence that production limits by OPEC, Russia and several other oil-producing nations are achieving their goal of shrinking stockpiles in developed countries.
The drop also comes at a time of synchronized global economic growth that is raising hopes about demand for oil.
While crude stockpiles fell, gasoline inventories rose by 3.1 million barrels and stocks of distillate fuels, which include diesel, were up by 639,000 barrels.
The market also shrugged off weekly figures showing U.S. oil production rose to nearly 9.9 million barrels a day, inching closer to an all-time high above 10 million barrels set in the 1970s.
EIA forecast earlier this month that U.S. output would hit 10.3 million barrels a day this year, the highest ever annual average production.
This story is developing. Please check back for updates.
