The American Petroleum Institute, a trade group, reported a 7.5 million barrel drop in USA crude inventories for the week ended September 16, versus a 3.4 million-barrel drop forecast by oil market analysts polled by Reuters.
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U.S. West Texas Intermediate (WTI) crude futures CLc1 extended gains after the data.
“The markets are girding themselves for the possibility of a rate increase this week”, said Paul Nolte, chartered financial analyst at Kingsview Asset Management.
USA crude oil inventories fell sharply last week, the third consecutive week of unexpected declines, while gasoline stocks decreased nationwide but posted record builds on the Gulf Coast amid the shutdown of a key pipeline, data from the Energy Information Administration showed on Wednesday.
Worldwide benchmark Brent crude oil futures were trading at $45.82 per barrel at 0649 GMT, down 13 cents from their last close.
“We expect the (policy board) to keep rates unchanged this meeting”, Singapore’s United Overseas Bank said in a note.
Crude prices rose Monday morning after Venezuelan President Nicolas Maduro said a deal between Organization of Petroleum-Exporting Countries and non-OPEC countries to curb output was close. Supplies of gasoline from the Gulf Coast to the East Coast have been disrupted since a leak was discovered on the 1.3 million barrel per day line on September 9.
In post settlement trading, US crude futures continued their climb, reacting to the API data.
Brent turned to positive, with its November contract rising as much as 35 cents.
The U.S. Energy Information Administration (EIA) will issue official inventory data for last week at 10:30 a.m. EDT (1430 GMT).
“If the EIA confirms (the data), that means US oil supply has fallen close to 21 million barrels over the last three weeks”.
Prices pared gains as markets digested the information, but USA crude managed to hold above the $45 psychological level.
OPEC Secretary-General Mohammed Barkindo said on Tuesday he expected the potential freeze deal between OPEC and other producers to last one year, longer than previously thought.
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Oil traders continued to weigh prospects that major oil producing nations will freeze output to support the market when they meet next week.
