Euro zone business activity data took a surprise downturn this month, suggesting the bloc may slip into recession, creating a drag on the outlook for oil demand.
Overall, the region's oil refineries have been consuming less crude than a year ago amid lacklustre economic growth, Euroilstock data has shown.
Falling crude oil stockpiles in the U.S., the world's biggest oil consumer also supported prices.
That went against eight analysts polled by Reuters who had estimated on average that crude inventories were up by about 200,000 barrels for the week.
Gasoline inventories dropped by 4.2 million barrels, while distillate inventories fell by about 2.3 million barrels, the API data showed.
Persons:
Nick Oxford, Israel, Vishnu Varathan, durably, Varathan, Stephanie Kelly, Muyu Xu, Tom Hogue
Organizations:
REUTERS, U.S, West Texas, Iran, Mizuho Bank, American Petroleum Institute, Reuters, Thomson
Locations:
Cushing , Oklahoma, Gaza, East, Israel, Palestinian, Saudi Arabia, China, U.S