US crude oil stocks rose by 2.8 million barrels, their third straight weekly gain, dwarfing analysts' forecasts for an increase of 2.1 million barrels.
The stock build occurred even though crude imports were down 1.25 million barrels per day, the biggest weekly decline since January. However, the inventory rise came in well below industry data that showed a 6.6-million-barrel increase.
Refinery utilization unexpectedly fell nearly 2 percentage points to 83.8 percent of capacity, the data from the Energy Information Administration showed — another factor that helped keep crude inventories higher.
US gasoline stocks fell 4.3 million barrels and distillate stocks, which include heating oil and diesel fuel, slid 4.0 million barrels — both much above forecasts.
"The large refined product drawdowns and decline in crude oil imports combined to produce a bullish report," said John Kilduff, partner at Again Capital LLC in New York.
In London, ICE Brent crude for May delivery settled at $120.18 a barrel, rising 30 cents, after falling to $119.05, the lowest since Feb. 17. On Tuesday, the contract fell 2.27 percent, front-month Brent's biggest one-day percentage loss since Dec. 14.
US May crude closed at $102.70 a barrel, gaining $1.68, narrowing Brent's premium to US crude to $17.48, from $18.86 on Tuesday. On Tuesday, US May crude had settled down $1.44 at $101.02, an eight-week low.
Brent's total trading volume surpassed that of US crude and was 13.7 percent above its 30-day average, according to Reuters data. U.S. trading volume was down 0.4 percent from its 30-day average.
