Oil Update: Oil prices ascend as US Stockpiles decrease more than expected

After a dip down below the $50 mark, oil prices rebounded after news of American Petroleum Institute released the inventory levels of American oil stockpiles. The numbers revealed showed a relatively higher decline compared to the expected numbers. Data from API showed crude inventories were down by 8.7 million barrels at 513.2 million barrels in the week to May 26. That compared with analyst expectations for a decrease of 2.5 million barrels.

Brent crude futures for July were up 60 cents, or 1.18 percent, at $51.36 a barrel, after trading higher earlier.

Further, oil prices were buoyant on the news that Trump may pull out of the Paris Climate Agreement. And if he does pull out, this would roll back the emissions percentages resulting in a favor to use and demand of fossil fuels which gives a boost to the oil prices.

On Wednesday, they fell $1.53, or 3 percent, to settle at $50.31 a barrel on their last day as the front-month contract. It was Brent's lowest close since May 10 and the contract dropped 2.7 percent last month, the third monthly decline.

U.S. West Texas Intermediate crude futures were up 64 cents, or 1.32 percent, $48.96 a barrel.

They dropped $1.34, or 2.7 percent, in the previous session to settle at $48.32 per barrel, the lowest close since May 12. The U.S. benchmark also fell for a third month in May, declining 2 percent.