Oil prices edged higher in European trading on Thursday, extending their biggest one-day jump since December after U.S. government data revealed the largest weekly decline in crude supplies so far this year.
The U.S. West Texas Intermediate crude June contract tacked on 46 cents, or around 1%, to $47.79 a barrel by 3:50AM ET (07:50GMT), after rising to a one-week high of $47.85 earlier.
The U.S. benchmark surged $1.45, or around 3.2%, on Wednesday.
Elsewhere, Brent oil for July delivery on the ICE Futures Exchange in London rose 48 cents to $50.70 a barrel. The global benchmark rallied $1.49 a day earlier.
Oil futures posted their largest one-day gain since December 1 on Wednesday after the U.S. Energy Information Administration said crude oil inventories fell by 5.2 million barrels in the week ended May 5, far exceeding market expectations. The reading marks the biggest weekly drawdown since December.
The EIA also said that gasoline stockpiles declined by 200,000 barrels, while distillate stockpiles were down 1.6 million barrels last week.
Crude sank to a five-month low earlier this week, rattled by concern over increasing U.S. crude output that has shaken investors’ faith in the ability of OPEC to rebalance the market.
OPEC and non-member oil producers are considering extending a global supply cut for nine months or more to give the market more time to rebalance, according to OPEC and industry sources.
In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.
A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.
Elsewhere on Nymex, gasoline futures for June inched up 1.3 cents, or nearly 0.9%, to $1.557 a gallon, while June heating oil added 1.2 cents to $1.488 a gallon.
Natural gas futures for June delivery dipped 0.4 cents to $3.288 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.
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