Oil has risen about 19% since closing below $40 a barrel and slipping into a bear market earlier this month.
Oil held gains after the longest advance in more than a year as U.S. crude and gasoline stockpiles declined, paring supplies at their highest seasonal level in two decades. Brent rose above $50 a barrel for the first time since July.
Futures gained 1% in New York after climbing more than 12% over the previous five sessions. U.S. crude inventories fell the most in five weeks, while motor-fuel stockpiles slid for a third week, according to data from the Energy Information Administration. OPEC is on course to agree to an output-freeze deal because its biggest members are already pumping flat out, said Chakib Khelil, the group's former president.
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Oil has climbed about 19% since closing below $40 a barrel and slipping into a bear market earlier this month. Russian Energy Minister Alexander Novak said that the nation was open to discussing a freeze after Saudi Arabian Energy Minister Khalid Al-Falih said informal talks next month may lead to action to stabilize the market. A deal to cap production was proposed in February but a meeting in April ended with no accord.
“Surprisingly large draws in crude and gasoline inventories made prices jump,” said Michael Poulsen, an analyst at Global Risk Management Ltd. “Yesterday's weekly oil inventory report deviated hugely from the consensus.”
West Texas Intermediate for September delivery was at $47.24 a barrel on the New York Mercantile Exchange, up 45 cents, at 1:51 p.m. London time. The contract rose 21 cents to close at $46.79 on Wednesday for a fifth day of gains, the longest run since April 2015. Total volume traded Thursday was 3% above the 100-day average.
Brent for October settlement rose as much as 20 cents to $50.05 a barrel on the London-based ICE Futures Europe exchange. The contract closed at $49.85 on Wednesday, 19% higher than its August low and near the 20% threshold for a bull market. The global benchmark crude traded at a $2.06 premium to WTI for October delivery.
U.S. crude stockpiles dropped by 2.5 million barrels last week to 521.1 million barrels, the EIA reported Wednesday. That compares with the median forecast in a Bloomberg survey for a 950,000-barrel increase. Gasoline inventories declined by 2.7 million barrels to 232.7 million barrels.
