Brent tops $52 as US crude inventories fall by 3 million barrels for 5th straight drop

Brent crude topped $52 a barrel for the first time since June on Wednesday after government data showed a fifth straight weekly decline in U.S. crude inventories.

U.S. crude inventories dropped 3 million barrels to a total of 499.7 barrels in the week through Sept. 30, U.S. Energy Information Administration (EIA) data showed on Wednesday. That was less than a 7.6 million barrel decline indicated by the American Petroleum Institute.

Analysts expect a rise in crude stocks of 2.6 million barrels.

The drawdown came even as refineries cut output and as imports of crude oil fell by 125,000 barrels a day. Brent crude rose , $1.15, or 2.3 percent, to $52.02 a barrel at 10:54 a.m. ET (1454), near the high of the session going back to June 10.

U.S. crude was up $1.23, or 2.5 percent, at $49.92, near its highest level since June 29.

Gasoline stocks rose by 222,000 barrels, compared with analyst expectations in a Reuters poll for a 702,000-barrel gain.

Distillate stockpiles, which include diesel and heating oil, fell by 2.4 million barrels, versus expectations for a 700,000-barrel drop, the data showed.

Brent has risen from below $49 on Sept. 28, when the Organization of the Petroleum Exporting Countries agreed a surprise cut in its output to support prices which are less than half the level of mid-2014. Under the deal, OPEC will target production of between 32.5 million barrels per day (bpd) and 33 million bpd, implying a cut of as much as 740,000 bpd from the August level, as reported in OPEC’s monthly report.

The move marked an about-face by OPEC, which in November 2014 dropped its role of cutting production. Although it hasn’t yet worked out all the details, and analysts are skeptical the cut will be implemented, the deal is supporting the market.

“The mere threat of a production cut should put a floor under oil prices until the next OPEC meeting on Nov. 30,” said Jason Gammel of U.S. investment bank Jefferies.

Top oil exporter Saudi Arabia has cut the price of flagship crude grade Arab Light to its Asian customers for November, state oil giant Saudi Aramco said on Wednesday, tracking weakness in the Dubai benchmark.