WASHINGTON, June 29 (UPI) -- U.S. crude oil inventories dropped sharply in the week ending June 24, the U.S. Energy Information Administration said.
Crude oil supplies fell by 4.4 million barrels to 359.5 million barrels, although supplies remain above the upper limit for the average range for this time of year, the EIA said in a report released Wednesday afternoon.
The drop sent oil prices rebounding higher. West Texas Intermediate crude oil for August delivery added 2 percent to $95.07 per barrel on the New York Mercantile Exchange.
Prices rose despite last week's pledge by the United States and 27 other members of the International Energy Agency to release 60 million barrels of oil from strategic reserves over 30 days to offset supply disruptions caused by political chaos in Libya.
The United States is expected to contribute half of the draw down, but analysts said the effect of the program would be short-lived. Sixty million barrels of oil is less than a day's daily oil consumption, which the IEA pegs at 88 million barrels.
Supplies of distillate fuels in the week rose by 300,000 barrels to 142.3 million barrels, while gasoline inventories fell by 1.4 million barrels to 213.2 million barrels. Gasoline stockpiles are in the middle of the average range for this time of year, the agency said.
Inventories of finished gasoline fell while gasoline blending component supplies rose during the week, the agency said.
The EIA said gas prices fell for the seventh consecutive week, dropping 7.8 cents to a national average of $3.574 per gallon on June 27.
