West Texas Intermediate crude pared losses after the government reported U.S. inventories tumbled the most in almost a year last week.

Prices rebounded to near a six-week high after declining 0.9 percent. The Energy Information Administration said supplies dropped 10.6 million barrels in the week ended Dec. 6. Analysts surveyed by Bloomberg had forecast a decrease of 3 million. The International Energy Agency raised estimates for 2014 global oil demand amid an economic recovery in the U.S.

WTI for January delivery slipped 37 cents, or 0.4 percent, to $98.14 a barrel at 10:43 a.m. on the New York Mercantile Exchange. It traded at $97.82 before the report and rebounded to $98.34 immediately after. The contract climbed to $98.51 yesterday, the highest settlement since Oct. 28. The volume of all futures traded was 1.8 percent below the 100-day average.

Brent for January settlement decreased 34 cents, or 0.3 percent, to $109.04 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $10.90 to WTI. The spread was $10.87 yesterday, the narrowest since Nov. 8 based on closing prices.