U.S. crude supplies slipped 4.3 million barrels last week, following a 400,000 barrels increase a week earlier, Energy Information Administration said on Wednesday.
Markets had estimated a slide by 2 million barrels, yet oil prices remained weak after the report.
Crude oil futures for August delivery fell to a low of $52.36 a barrel, while currently trading around $52.40 after hitting a high of $53.48.
The advance in the U.S. dollar negatively affected oil prices, as the dollar index climbed for a third straight session, trading at 97.20.
The dollar took a boost after Fed Chair Janet Yellen reaffirmed the central bank is on track to raise interest rates this year, as long as the economy is showing progress.