Oil prices jumped on Wednesday after industry data showed a larger than expected drawdown in U.S. crude stocks.
Benchmark Brent crude futures rose 1.3 percent to $74.56 a barrel, while U.S. crude futures were up 1.6 percent at $71.58.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 5.4 million barrels last week, after Hurricane Ida shut numerous refineries and offshore drilling production. That compared to a forecast 3.5 million barrel drop.
There were inventory declines of 2.8 million barrels for gasoline and 2.9 million barrels for distillates while crude stocks at the Cushing, Okla., storage hub edged down by 1.3 million barrels for the week.
The U.S. Energy Information Administration's oil inventory report will be released later in the day. On average, the EIA is expected to show crude inventories down by 3.5 million barrels, according to a survey of analysts conducted by S&P Global Platts.
Expectations that COVID-19 vaccination rates will contribute to economic recovery from COVID-19 also improved the fuel demand outlook.
The International Energy Agency predicted on Tuesday that vaccine rollouts could drive an economic rebound, resulting in a sharp jump in demand of 1.6 million barrels a day next month.