oil futures headed higher on wednesday after official data show that us crude inventories fell by almost 10 million barrels last week but domestic supplies of gasoline and distillates unexpectedly rose prices had posted a decline on tuesday giving back a modest rise that followed a shortlived weekend rebellion in russia by the wagner group mercenary force that raised questions about president vladimir putins grip on power the energy information administration on wednesday reported that us commercial crude inventories fell by 96 million barrels for the week ended june 23 on average analysts polled by sp global commodity insights expected a 48 millionbarrel decline the american petroleum institute late tuesday reported a 24 million barrel drop in last weeks us crude inventories according to a source citing the data the crude supply draw was primarily a reflection of strengthening exports and comes despite us refining activity continuing to turn lower counterseasonally said troy vincent senior market analyst at dtn the eia report showed weekly inventory gains of 600000 barrels for gasoline and 100000 barrels for distillates analysts had forecast weekly decreases of 1 million barrels for gasoline and 900000 barrels for distillates crude stocks at the cushing okla nymex delivery hub edged up by 12 million barrels for the week the eia said while stocks in the strategic petroleum reserve fell by 14 million barrels a widening brentwti price spread over the past six weeks is beginning to translate into resurgent us crude exports said dtns vincent us crude exports are beginning to trend higher once more after sliding lower over the past few months vincent said its clear that there is growing global appetite for us sour oil barrels following the saudis announcing supply cuts and lifting osps official selling prices to a point that theyre largely pricing themselves out of the market overall for oil its a bullbear battle in a very small ring phil flynn senior market analyst at the price futures group told marketwatch on wednesday its a recession versus a supply squeeze traders are trying to decide whether we are going into a recession based on price structure that suggests over supply versus the possibility it is predicting supply tightness later this year he said adding that the market has been very sensitive to comments by central bank leaders readpowell and peers vow to keep fighting inflation until there is evidence theyve succeeded on the supply side the us spr has just one more release to go and saudi arabias voluntary oil production cut goes into effect july 1 said flynn also theres talk that the saudis are considering making the 1 million barrel a day cut permanent that could lead to early july fireworks oil prices had finished a bit higher monday as investors largely took in stride the brief mutiny that saw wagner group forces advance to within around 120 miles of moscow before being called off by the groups leader yevgeny prigozhin on saturday crude fell back tuesday with oil unable to shake worries over the economic outlook european central banks last week delivered a series of interest rate increases that stoked recession fears for the region with the eurozone great britain and china barely growing the demand outlook will continue to depress spot prices in the near term said peter cardillo chief market economist at spartan capital in a note we think spot wti prices are now able to retest the 68 level and if breached to the downside 65 dollar oil should be expected he wrote this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal