Oil prices jumped on Wednesday after industry data pointed to a sharp drop in U.S. crude stocks and the European Union announced a new sanctions package against Russia, including an embargo on Russian oil.
Benchmark Brent crude futures rallied 3.5 percent to $108.65 a barrel, while U.S. crude futures were up 3.6 percent at $106.12.
The American Petroleum Institute on Tuesday reported that U.S. crude oil inventories fell 3.48 million barrels last week, signaling a tightness to supply in the world's largest oil consumer.
Distillate inventories dropped 4.46 million barrels and gasoline stocks were down 4.5 million barrels. Data from the Energy Information Administration is due later in the day.
Meanwhile, the European Commission has announced several measures including plans to phase out supplies of Russian crude oil within six months and refined products by the end of 2022.
European Commission President Ursula von der Leyen also proposed to remove Russia's biggest bank Sberbank and two other banks from the international SWIFT transaction and messaging system as part of a sixth sanctions package to punish Moscow over its war in Ukraine.
