2017.12.1303:49:00UTC+00Oil Prices Rebound on U.S. Crude Stock Decline

Oil prices advanced on Wednesday as data showed a bigger-than-projected drop in U.S. crude stockpiles, while expectations for a prolonged shutdown of a key North Sea crude pipeline also continued to support markets.

Brent crude traded up 64 cents or 1 percent at $63.98 per barrel. The contract closed down $1.35 or 2.1 percent on Tuesday on a wave of investors locking in profits after a report of a major North Sea pipeline drove up the international benchmark above $65 for the first time since mid-2015.

Meanwhile, U.S. WTI crude traded up 42 cents or 0.7 percent at $57.56 per barrel, after ending the prior session down 85 cents.

The UK's biggest pipeline from its North Sea oil and gas fields is expected to be inoperational for several weeks for repairs, according to its operator on Tuesday. The pipeline that transports Forties crude was shuttered after cracks were discovered.

Meanwhile, after closing on Tuesday, API crude stocks in the U.S. declined by 7.4 million barrels in the previous week, almost twofold the drawdown expected by analysts, who predicted a 3.8 million barrels decline.