Oil prices climbed sharply on Wednesday, as the U.S. government reported a weekly drop of nearly 13 million barrels in domestic crude stocks, reportedly the largest since 2016.

Given the big draw in gasoline and supply decline at the U.S. oil trading hub at Cushing, Okla., "we wouldn't be surprised to see the $60 level get breached in WTI," he said. "However, with the upcoming OPEC meeting and also the [Group of 20 leaders summit], we will see the next directional move on the results of these two events."

August West Texas Intermediate crude rose $1.83, or 3.2%, to $59.66 a barrel on the New York Mercantile Exchange after tapping a high at $59.93. It was trading at $59.24 before the supply data. The contract wrapped up trading Monday at $57.90, the highest front-month contract finish since May 29, according to Dow Jones Market Data.

International benchmark August Brent crude gained $1.63, or 2.5%, to $66.68 a barrel on ICE Futures Europe. Brent rose 0.3% to $65.05 on Tuesday. Last Friday, the contract saw its highest close—at $65.20—since May 30.

The Energy Information Administration on Wednesday reported that U.S. crude supplies dropped by 12.8 million barrels for the week ended June 21. Analysts polled by S&P Global Platts expected a decline of 2.8 million barrels in crude stocks, on average. The American Petroleum Institute on Tuesday reported a 7.5 million-barrel fall.

Source : Marketwatch