Investing.com - Crude oil prices rose on Wednesday, even as a lower-than-expected draw in U.S. oil inventories added to fears of a looming glut in global supplies.
On the New York Mercantile Exchange crude futures rose 1.44% to settle at $57.05 a barrel, while on London's Intercontinental Exchange, Brent added 2.02% to $63.66 a barrel.
A report from the Energy Information Administration (EIA) showed crude stockpiles fell 1.1. million barrels in the week ended June 28, below expectations of a draw of about 2.96 million barrels.
Gasoline inventories fell by roughly 1.58 million barrels against expectations of a draw of 2.17 million barrels, while distillate stockpiles unexpectedly rose by 1.58 million barrels, compared to expectations of a decline of 2.16 million barrels.
The less-than-expected draw in crude stockpiles was blamed on a rebound in crude imports, stoking concerns that supplies could enter a surplus amid fears of slowing oil-demand growth.
"A solid rebound in imports has helped to limit today's draw to crude inventories, as refining activity continues to tick higher as we push into peak summer driving season," Matt Smith at ClipperData said.
The fall in crude prices comes a day after OPEC and its allies, including Russia, agreed to extend oil supply cuts until March 2020 in a bid to curb supplies and support oil prices.
The extension, however, was longer than the six months some had expected, indicating that the oil cartel and its allies may be anticipating a potential surplus in supplies next year.
The deal was "a bit longer than expected, highlighting concerns of an oversupplied market in 2020," Credit Suisse (SIX:CSGN) said.