Investing.com - Oil prices regained ground on Thursday after an industry report on Wednesday showing a far larger than expected crude inventory drawdown last week eased concerns about oversupply.
U.S. West Texas Intermediate crude futures were at $45.84 a barrel by 08.20 AM GMT (04.20 AM ET), up 73 cents or 1.64%.
Brent oil on the ICE Futures Exchange in London was last at $48.51, up 72 cents or 1.51%.
Data from industry group The American Petroleum Institute late Wednesday showed that U.S. crude inventories fell by 5.8 million barrels in the week ended June 30 to 503.7 million.
The report which was released a day later than usual due to Tuesday's U.S. holiday also showed a fall of 5.7 million barrels in gasoline supplies.
The Energy Information Administration was to release its inventory report later on Thursday, with analysts expecting a drawdown of 2.28 million barrels.
But oil markets continue to remain oversupplied despite a pledge by the Organization of the Petroleum Exporting Countries to cut production from January of this year until March 2018 in a bid to support the market.
Oil prices ended the previous session sharply lower after data showing that exports by OPEC rose for a second month in June, adding to doubts over whether the group can do enough to tighten the market.
The group's efforts to rebalance the market have been undermined by rising production from Libya and Nigeria, which are exempt from the output-cut agreement and by increasing shale production in the U.S.
Elsewhere on Nymex, gasoline futures were up to $1.524 a gallon, while August heating oil rose to $1.498 a gallon.
Natural gas futures were at $2.873 per million British thermal units.