Crude oil futures recovered from a mid-session setback and settled higher on Wednesday, lifted by tight supplies and expectations of higher demand during the summer driving season.
Reports that processing activity rose significantly, with capacity use surging to 93.2%, the highest level in about 30 months, contributed as well to the rise in oil prices.
West Texas Intermediate Crude oil futures for July ended higher by $0.56 or about 0.5% at $110.33 a barrel, off the day's high of $111.68 a barrel. The contract dropped to a low of $109.23 around noon.
Data released by Energy Information Administration (EIA) showed crude stockpiles dropped by 1.019 million barrels in the U.S. last week. Gasoline inventories too dropped in the week, falling by 0.482 million barrels, while distillate stockpiles increased by 1.657 million barrels.
The American Petroleum Institute (API) reported on Tuesday that U.S. crude stocks unexpectedly rose by 567,000 barrels last week.
