Oil prices rebounded from earlier losses on Wednesday after data showed a larger-than-expected falloff in U.S. crude inventories, a salve for investors after several days of declines on worries about the slow pace of global efforts to reduce a glut.
U.S. commercial crude inventories fell by 3.6 million barrels to a total of 528.7 million barrels in the week through April 21, the Energy Information Administration said.
U.S. crude futures have slipped in six of the last seven days, as investors have grown impatient with high inventories after last year's landmark deal by the world's major oil producers to cut output.
The U.S. government data counters Tuesday's report from industry group the American Petroleum Institute that showed an unexpected build in inventories.
However, gasoline and distillate stockpiles grew, while U.S. production and imports increased, so the path for higher prices remains tentative, analysts said.