Oil prices hit their highest level since mid-2015 and then retreated after U.S. government data showed that the latest weekly draw in domestic crude stocks was not as big as an industry trade group had reported.
The U.S. Energy Information Administration (EIA) said U.S. crude stocks decreased by 2.4 million barrels during the week of Oct. 27.
That exceeded the 1.8 million barrel draw forecast by analysts in a Reuters poll but fell well short of the 5.1 million barrel decline reported late on Tuesday by the American Petroleum Institute.
"Oil prices fell since the release of the (EIA) report," said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany, noting that the crude draw was "significantly less than the API numbers."
U.S. oil production also ticked up by 46,000 barrels a day to 9.55 million barrels a day, while weekly American crude oil exports rose to an all-time high of 2.13 million barrels per day.