Investing.com – WTI crude oil prices settled higher as data showing an unexpected draw in crude supplies, snapping a three-week streak of rising crude stockpiles, offset a continued rise in domestic production.
On the New York Mercantile Exchange crude futures for May delivery rose 2.6% to settle at $65.17 a barrel, while on London's Intercontinental Exchange, Brent rose 3.13% to trade at $69.53 a barrel.
Inventories of U.S. crude fell by 2.622 million barrels for the week ended March 16, confounding expectations for a rise of 2.6 million barrels.
Gasoline inventories – one of the products that crude is refined into – fell by 1.693 million barrels, missing expectations for a decline of 2.008 million barrels, while supplies of distillate – the class of fuels that includes diesel and heating oil – fell by 2.022 million barrels, beating expectations for a decline of 1.746 million barrels.
The fall in crude supplies comes as data showed US crude imports fell by 508,000 barrels per day last week and somewhat eased investor concerns that faster pace of production would lead to uptick in the crude stockpiles.
Despite refinery maintenance hitting a peak this month, the refinery utilization rate rose 1.7 percentage points, beating estimates for a 0.3 percentage point decline.
Also supporting crude prices was growing expectations that President Donald Trump may adopt a tougher stance on Iran amid a visit from Saudi Crown Prince Mohammad Bin Salman this week.
Some have suggested that the president may look to reimpose sanctions on Iran, raising the prospect of Middle East supply disruptions as countries would be pressured to reduce their purchases of Iranian crude.