West Texas Intermediate futures for August delivery climbed to $51.71 (+0.58%); Brent crude advanced to $57.26 (+0.25%) after data from the Energy Information Administration showed that U.S. crude inventories fell 4.3 million barrels in the week ended July 10. Total commercial stockpiles of crude oil and petroleum products, including gasoline and diesel fuel, rose by 2.8 million barrels to a record high of 1.27 billion barrels.

Although U.S. crude inventories dropped last week and Iran needs several months to boost exports for operational reasons, the outlook remains bearish as markets are already oversupplied.