West TX Oil at $58 on U.S. Inventory Draw

Oil prices rebounded on Wednesday to settle 1.71 percent higher, with U.S. crude snapping a five-day decline, after another weekly inventory draw but gains were still limited by a huge supply overhang and concerns about a strong dollar.

U.S. crude stocks fell by nearly 2.7 million barrels last week, down for a third consecutive week, as refineries hiked output, the government-run Energy Information Administration said. Gasoline and distillate inventories also declined.

While the crude draw was nearly triple that estimated by analysts in a Reuters survey, it was only about half of the 5.2 million-barrel drop reported by industry group American Petroleum Institute, disappointing some market bulls.