Crude oil spikes towards $50 after inventories unexpectedly fall

oil barrels

(Olle Svensson/Flickr)

US oil inventories fell by 3 million barrels last week, according to the Energy Information Administration.

Analysts had estimated that stockpiles rose by 2.56 million.

Stockpiles at Cushing, Oklahoma, a key delivery hub rose by 569,000 barrels. Gasoline inventories also increased, by 220,000 barrels.

Overall, inventories remained historically high for this time of year.

The EIA's release followed data from the American Petroleum Institute on Tuesday which showed a draw by 7.6 million barrels, after markets had expected a build by about 1.5 million.

This surprise draw sent oil prices higher. Following the EIA's release, West Texas Intermediate crude futures in New York added to gains, rising 2.3% to $49.82 per barrel. WTI was last above $50 per barrel on June 29.

NOW WATCH: STIGLITZ: It makes me crazy that everyone gets this wrong about the economy

More From Business Insider

• An oil explorer just made what could be one of the biggest discoveries in the history of Alaska
  

• Hannity rails against Glenn Beck: I have 'no interest' in making peace with 'a guy that gives a Nazi analogy a day'
  

• PepsiCo is being sued over its Naked Juice marketing