By Yasin Ebrahim

Investing.com — U.S. crude oil inventories unexpectedly dropped last week, the API reported Tuesday, following a day of wild swings in oil prices on easing supply fears as President Biden could reportedly lift a ban on U.S. oil major Chevron Venezuela (NYSE:)

The U.S. benchmark oil traded at $110.52 a barrel in the wake of the report. It had fallen 1.6% to $112.40 a barrel.

The week ending May 22nd saw a drop of 2.4 million barrels 12. This compares to the API report for last week of 1.6million barrels. According to economists, the increase was expected to be about 1.5 million barrels. 

API data revealed that gasoline inventories decreased by 5.1million barrels while distillate stock increased by around 1.1 million barrels.

On Wednesday, the official government inventory report is due to reveal that weekly U.S. crude oil consumption rose by approximately 1.4 million barrels.