The Energy Information Administration reported today that the US crude inventories fell 4.6 million barrels to 413.3 million barrels during the past week, while analysts forecast a drop by 1.6 million barrels.

Gasoline stocks rose 8 million barrels to 240.7 million barrels, and the distillate stocks rose 2.5 million barrels to 129.4 million barrels.

While the American Petroleum Institute reported yesterday in preliminary data that the US crude inventories fell 1.1 million barrels during the same period.

US stock indices rose in early trading on Wednesday, after the release of upbeat economic data amid expectations of a rate hike.

The US consumer price index rose by 0.5% in December, more than forecasts of 0.4%, and the core reading (excluding energy and food prices) rose 0.8%. 

Based on the data, the US consumer price inflation rose to 7%, which is the highest level in the US since 1982.

Federal Reserve Chairman Jerome Powell said yesterday that the central bank is ready to accelerate rate hikes to ease the rising inflation.

As for stocks, Dow Jones rose 0.5% or 176 points to 36,430 as of 15:14 GMT, and S&P 500 rose 0.7% or 35 points to 4,747, while Nasdaq rose 1.1% or 161 points to 15,315.

Oil prices continued to rise as the US market opened on Wednesday, for the second day in a row, and hit 2-month highs after the release of preliminary data on US crude inventories that showed a large drop, and ahead of the EIA's weekly report.

US crude rose 1.1% to the highest since November 11 at $82.24 a barrel, after opening at $81.36, and hit a low at $81.19, and Brent crude rose nearly 1% to the highest since November 10 at $84.44 a barrel, after opening at $83.59, and hit a low at $83.54.

The US crude gained 3.6% yesterday, and Brent crude rose 3.25%, in the first daily gain in 3 days, and the largest daily gain since last December 27.

These gains came thanks to the US dollar's drop against a basket of major currencies, and data showing that OPEC Plus output was less than specified during December, due to a slowdown in production in Nigeria and Libya.

The American Petroleum Institute reported in preliminary data that the US crude inventories fell 1.1 million barrels during the week ending January 7, while analysts forecast a drop by 1.6 million barrels.

The total US commercial inventories fell to 419 million barrels, which is the lowest level since the week ending September 17, in a positive sign of the US domestic demand.

The US Energy Information Administration's official report will be released later today, amid forecasts for inventories to drop by 2.1 million barrels.

While the US output was unchanged last week, with the total at 11.8 million barrels per day, the highest level since the week ending May 1, 2020.

At 13:30 GMT, the US economy released its reading for the consumer price index, which rose by 0.5% in December, more than forecasts of 0.4%, but less than the previous reading of 0.8%. 

The core reading (excluding food and fuel prices) rose by 0.6%, more than forecasts of 0.5%, and more than the previous reading of 0.5%. This data is positive for the US dollar.