"We're not pressuring the downside that much. Of course, the reason is because we had some unexpectedly large draws in distillates and gasoline that, when added together, are two times bigger than the crude build," said Bob Yawger, director of energy futures at Mizuho.
Gasoline stocks fell by 6.3 million barrels, compared with analysts' expectations in a Reuters poll for a 1.2 million-barrel drop. Distillate stockpiles, which include diesel and heating oil, declined by 4.4 million barrels, versus expectations for a 1.5 million-barrel draw, the EIA data showed.
OPEC said in its monthly report that supply from non-members is likely to grow by 1.66 million barrels per day (bpd) in 2018, almost double the growth it predicted in November, largely due to rising U.S. supply.
The Organization of the Petroleum Exporting Countries also said oil inventories across the most industrialized countries rose in January for the first time in eight months, a sign the impact of its output cuts may be waning. OPEC trimmed its 2018 demand forecast for its own crude by 250,000 bpd to 32.61 million bpd, the fourth consecutive decline.
Commerzbank strategist Carsten Fritsch said that "according to the OPEC report, demand for OPEC's oil must be 33 million barrels per day for the rest of the year to get rid of any remaining oversupply."
Brent price has fallen by around 1 percent so far this week on concerns that coordinated supply cuts by OPEC and its partners might not be enough to offset the relentless rise in U.S. crude production.