Crude futures neared $50/b Wednesday after US Energy Information Administration oil data showed a larger-than-expected draw in crude stocks.
A late push saw ICE Brent hit an intraday high of $49.78/b minutes before the market settle and RBOB futures nearly turn positive.
A surprise build in gasoline stocks weighed on RBOB prices Wednesday, while the sixth straight weekly decline in distillate stocks led ULSD futures higher.
ICE July Brent settled up $1.13 at $49.74/b. NYMEX July crude settled 94 cents higher at $49.56/b.
NYMEX June ULSD settled 2.39 cents higher at $1.5169/gal. NYMEX June RBOB settled down 86 points at $1.6486/gal.
"Overall I would give the [EIA] report a bullish grade," said Kyle Cooper, consultant at ION Energy. "I don't think the supply-demand balance is tight yet, but it's tightening up," he said.
US commercial crude stocks drew by 4.226 million barrels last week, driven primarily by a reduction in US imports, which fell 362,000 b/d to 7.315 million b/d.
Analysts surveyed Monday by S&P Global Platts expected crude stocks decreased 3.3 million barrels.
Crude imports from Canada rebounded last week, rising 501,000 b/d to 3.088 million b/d despite ongoing fires in the heart of Alberta's oil sands producing region, which have knocked out as much as 1.2 million b/d of output.
Gasoline stocks built 2.043 million barrels to 240.111 million barrels. Analysts were looking for a 1.6 million barrel draw.
Stocks on the US Atlantic Coast -- home to the New York Harbor-delivered NYMEX RBOB contract -- rose 2.232 million barrels last week to 68.276 million barrels, an 18% surplus to the five-year average for this time of year.
USAC gasoline imports increased 253,000 b/d to 864,000 b/d, pushing stocks higher in the region.
"Cheaper European blending components have moved into the US East Coast, putting a bearish tint on gasoline," Citi Research analysts said in a note.
US distillate stocks drew 1.284 million barrels to 150.878 million barrels, EIA said.
