Investing.com - West Texas Intermediate oil futures pulled further back from intraday lows in North America trade on Thursday, after data showed that oil supplies in the U.S. fell less than expected.
Crude oil for July delivery on the New York Mercantile Exchange lost 35 cents, or 0.71%, to trade at $48.66 a barrel by 15:05GMT, or 11:05AM ET compared to $48.31 ahead of the report.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 1.366 million barrels in the week ended May 27. Market analysts' expected a crude-stock decline of 2.49 million barrels, while the American Petroleum Institute late Wednesday reported a supply increase of 2.35 million barrels.
The reports come out one day later than usual due to the Memorial Day holiday in the U.S. on Monday.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 0.704 million barrels last week, the EIA said. Total U.S. crude oil inventories stood at 535.7 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.
Meanwhile, Brent's premium to the WTI crude contract stood at 80 cents a barrel, compared to a gap of 71 cents by close of trade on Wednesday.
The report also showed that gasoline inventories decreased by 1.492 million barrels, compared to expectations for a drop of 0.157 million barrels, while distillate stockpiles fell by 1.255 million barrels, compared to forecasts for a 0.891 million decline.
Additionally, oil had been under pressure in early trade after the Organization of the Petroleum Exporting Countries (OPEC) confirmed that it had failed to agree to place a ceiling on oil production at their meeting on Thursday in Vienna.
U.S. crude hit intraday lows of $47.98 on leaks of the lack of an agreement, while Brent oil for August delivery slumped to an intraday low of $48.86 a barrel after briefly rising to $50.30 earlier in the session.
The London barrel last stood at $49.55 by 15:12GMT, or 11:12AM ET, down 17 cents, or 0.34%.
Nymex prices rallied to $50.21 last week, the most since October 9. U.S. crude futures are up nearly 80% since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment.
At the same time, Brent prices hit an eight-month peak of $50.96 last week as unplanned supply disruptions in Nigeria eased concerns over a global glut. Brent futures prices are up by roughly 85% since briefly dropping below $30 a barrel in mid-February.