Prices for both crude benchmarks were seen above the $50 mark, with futures for the North American West Texas Intermediate (WTI) climbing 1% higher to $50.04, while the European benchmark Brent crude added 1.2% to $50.34 a barrel; the highest level seen since November.
Crude prices climbed after a sharp drop in US crude stockpiles was seen in the latest government report from Energy Information Administration. The report released on Wednesday showed that crude supplies at Cushing, Oklahoma declined by 649,000 barrels to 67.6 million barrels in the previous week.
The report also revealed that the US crude output dropped last week, hitting the lowest level since September 2014.
Goldman Sachs analysts forecast both benchmarks to average $45 per barrel this year, higher than the previous projections of $38 for WTI and Brent with $39 per barrel.
Members of the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna next week and expected to continue discussing the commodity’s output as some oil producers are pumping near a record high.