U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.2 million barrels from the previous week. At 442.0 million barrels, U.S. crude oil inventories are about 7% above the five year average for this time of year.

Total motor gasoline inventories increased by 2.1 million barrels last week and are about 3% above the five year average for this time of year. Finished gasoline and blending components inventories both increased last week.

Distillate fuel inventories decreased by 1.5 million barrels last week and are about 8% below the five year average for this time of year. Propane/propylene inventories decreased by 3.2 million barrels last week and are about 5% below the five year average for this time of year. Total commercial petroleum inventories decreased last week by 6.0 million barrels last week.

• Saudi Arabia Crude Production Surges in November, by 377,000 B/D

• Global Oil Supply Hit 100.64 Mln B/D in November

• OPEC Maintains Demand Forecasts for 2018, 2019

• OECD Oil Inventories Rose to 3.883 Bln Barrels in Oct

Brent crude, the global benchmark, was trading up 1.7% at $61.22 a barrel on London's Intercontinental Exchange.

West Texas Intermediate futures, the U.S. oil standard, were up 1.9% at $52.62 a barrel on the New York Mercantile Exchange.

The American Petroleum Institute, an industry group, reported late Tuesday that U.S. stockpiles of crude oil had reduced by 10.2 million barrels last week. The drop was considerably larger than market expectations of a 3.5 million barrel decline, according to analysts at ING Bank. The U.S. Energy Information Administration is set to release official inventory figures for last week on Wednesday.