Another driver pushing up the price of the energy commodity is an executive board member of the European Central Bank indicating the financial institution is poised to help stave off the sovereign debt crisis' spread elsewhere in the region.
Benoit Coeure suggested the ECB is set to begin anew with the sale of bonds for Spain, which is drawing increased scrutiny and attention as the next victim of the sovereign debt crisis that has been thrashing about in the 17-nation euro zone for more than two years.
The U.S. Energy Department indicated supplies of gasoline dropped 4.28 million barrels during the week prior and inventories of distillate fuel, which encompasses heating oil and diesel fuel, fell 4 million barrels.
"The drawdown in gasoline and distillate was the big surprise today," analyst and broker Chris Dillman with Tradition Energy in Connecticut told Bloomberg. "The product supply numbers are sending the entire market higher."
At 12:04 p.m. on Wednesday, crude oil futures gained 0.13 percent, a 15 cent rise to $120.03 per barrel.
The prospects of a bond-purchasing program to be administered by the ECB helped drive up the value of the shared currency of the European Union against the world's reserve currency. The ECB is aiming to reduce expenses and costs germane to borrowing as Spain's bond yields have been touching levels akin to those of Ireland, Portugal and Greece immediately prior to when those nations solicited emergency bailout aid.
"The dollar came under pressure and oil rose after an ECB official hinted that the bank may purchase Spanish bonds," also an analyst and broker Gene McGillian with Tradition Energy told Bloomberg.
Mariano Rajoy, three months into his term as Spanish prime minister, is encountering challenges persuading investors as to his administration's ability to cut down on the budget deficit.
Dow Jones Newswires reports crude oil inventories gained 2.8 million barrels for week ended April 6. The news service forecast increases of 2.2 million barrels.
But, since reaching their recent highs during the month of March, the energy commodity has lost about 8 percent of its value. Drivers of that downgrade include a reduced amount of tension regarding oil-rich Iran and its nuclear ambitions, which drew sanctions against oil exports from western nations.
Fundamentals have lowered for supply and demand in the U.S., the globe's top consumer of the energy commodity, which also pulled down the price of crude oil. Inventories have increased more than anticipated while consumption of the energy commodity has fallen.
Developed nations' discussions about restricting crude oil's rise in prices by releasing from strategic reserves also reduced prices on the market, Dow Jones Newswires reports.
"The air that was injected into the market in February has been leaking out slowly," states the Schork Report.
China, the globe's second-largest consumer of crude oil, is going through an economic slowdown, which also serves as a burden to the energy commodity.
The Asian nation is embroiled in a standoff with the Philippines in oil- and gas-rich waters in the South China Sea, according to The Sydney Morning Herald.
Circling around fishing, the dispute began with Philippine officials attempting to charge Chinese fishermen on eight boats. But their efforts were quashed by two marine surveillance ships, according to the foreign affairs department in Manila.
China believes the waters are under its jurisdiction yet the Philippines is attempting to garner support for territorial disputes.
''It's the law of physics: two competing parties cannot occupy the same space at the same time,'' politics professor Carlyle Thayer with the ADF academy in Canberra told The Sydney Morning Herald.