03:48 PM EDT, 08/27/2025 (MT Newswires) -- Commercial crude stockpiles in the US shrank more than expected last week as distillate fuel and motor gasoline inventories dropped, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, fell by 2.4 million barrels to 418.3 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a draw of 2 million barrels in a survey compiled by Bloomberg.

Distillate fuel stocks declined by 1.8 million barrels, while motor gasoline inventories dropped by 1.2 million barrels. Propane and propylene added 1.7 million barrels. Total commercial petroleum inventories were down by 4.4 million barrels.

Gasoline output rose last week, while production of distillate fuel decreased, according to the report.

West Texas Intermediate crude was up 1.1% at $63.92 a barrel in Wednesday late-afternoon trade, while Brent rose 0.8% to $67.24. Both benchmarks saw notable declines in the previous session.

"Crude futures steadied following Tuesday's slump after (US President Donald Trump) imposed 50% tariffs on most US imports from India, making good on a threat to punish one of the world's largest economies over its purchases of discounted Russian oil," Saxo Bank said in a report.

However, market concerns continue to be countered by the risk of a "growing supply glut" amid increasing production at the Organization of the Petroleum Exporting Countries and its allies, Saxo said. Trump's doubling of tariffs on imports from India to 50% took effect Wednesday.

ING Bank said that Trump's move hasn't been enough to stop India from purchasing Russian oil. "The market will be watching Russian oil flows to India closely going forward to gauge the impact, if any, of secondary tariffs."