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Oil prices moved higher on Wednesday on supply concerns after data showed a sharp drop in U.S. crude oil inventories in the week ended March 21st.
Renewed efforts from the U.S. to limit Venezuelan and Iranian oil exports also boosted prices.
West Texas Intermediate Crude oil futures for May closed up $0.65 or about 0.94% at $69.65 a barrel.
Brent crude futures settled at $73.79 a barrel, gaining $0.77 or about 1.05%.
Data from the Energy Information Administration (EIA) said crude oil inventories tumbled by 3.3 million barrels last week after climbing by 1.7 million barrels in the previous week.
At 433.6 million barrels, U.S. crude oil inventories are about 5 percent below the five-year average for this time of year, the EIA said.
The EIA said gasoline inventories also fell by 1.4 million barrels last week but remain 2 percent above the five-year average for this time of year.
Distillate fuel inventories, which include heating oil and diesel, also dipped by 0.4 million barrels last week and are about 7 percent below the five-year average for this time of year, the report said.
Supply concerns linger following the U.S. President Donald Trump announcing a 25% tariff on countries importing oil and gas from Venezuela.
Also, in the past week, the Trump administration imposed new Iran-linked sanctions on one individual and several entities, including a Chinese "teapot" oil refinery for purchasing and processing Iranian crude oil.
