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Oil prices rally after U.S. crude inventory data

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Oil prices settled higher on Wednesday as official data showed a bigger-than-expected drop in U.S. crude stockpiles, Xinxua reported.

U.S. crude oil inventories fell by 4.1 million barrels to 432.4 million last week, marking the largest one-week drop since the end of March, the Energy Information Administration (EIA) said in its weekly report on Wednesday.

Gasoline stockpiles declined by 2.3 million barrels for the week, while distillate stockpiles fell 2.1 million barrels, said the EIA.

Meanwhile, total U.S. domestic crude production climbed by 100,000 barrels a day to a fresh weekly record of 10.9 million barrels a day last week, according to the EIA.

The West Texas Intermediate for July delivery rose 28 U.S. cents to settle at 66.64 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery added 86 cents to 76.74 dollars a barrel on the London ICE Futures Exchange.

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