Oil Climbs As Sources Say API Data Show Drop In U.S. Crude Supply

Oil prices rose in electronic trading Wednesday after the American Petroleum Institute reported a drop of 8.7 million barrels in U.S. crude supplies for the week ended May 26, according to sources. The report was issued a day later than usual due to Monday's Memorial Day holiday. The API data also showed a fall of 1.7 million barrels in gasoline supplies, while inventories of distillates were up 124,000 barrels, sources said. Supply data from the Energy Information Administration will be released Thursday morning. Analysts polled by S&P Global Platts forecast a fall of 3.2 million barrels in crude inventories. July crude was at $48.79 a barrel in electronic trading, up from the contract’s settlement of $48.32 on the New York Mercantile Exchange.