Crude oil prices in the US neared $50 per barrel on Wednesday after new data showed the U.S. market was starting to tighten with falling supply and lower inventories following two years of heavy surplus.
U.S. crude stocks decreased by 1.2 million barrels last week while distillate stockpiles also fell according to data from the American Petroleum Institute (API) showed.
The biggest decrease appears to be from U.S. shale producers who were likely cutting back on production to deal with falling oil prices over the last 16 months.
Benchmark Brent crude has dropped to about $50 from a high of $115 a barrel in June 2014.
Brent was up 90 cents a barrel at $52.82 after jumping by $3 on Tuesday to close above $50 for the first time in a month.
U.S. light crude rose $1.18 a barrel to a high of $49.71 before easing back to trade around $49.60.