The West Texas Intermediate for August delivery gained 1.86 U.S. dollars, or 2.75 percent, to settle at 69.56 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery shot up 1.77 dollars, or 2.45 percent, to settle at 74.03 dollars a barrel on the London ICE Futures Exchange.
U.S. crude oil inventory dropped by 9.6 million barrels in the week ending June 23, much higher than analysts' expectation of a modest decrease, according to data issued by the Energy Information Administration on Wednesday.
Meanwhile, U.S. gasoline and distillate fuel showed slight increases of 0.6 million barrels and 0.1 million barrels, respectively.
By contrast, the American Petroleum Institute (API) on Tuesday reported a decrease of 2.408 million barrels of crude oil in U.S. inventories for the week ending June 23.
Energy traders however turned bullish quickly after the release of the EIA energy report and this report reset market participants' oil outlook, which was too pessimistic, according to Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.
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