Oil prices increased on Wednesday with data showing larger than expected drop in US crude stocks, further pressuring already tight global market.

International benchmark Brent crude cost $106.39 per barrel at 0615 GMT for a 1.35% gain after closing the previous session at $104.97 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $103.62 per barrel at the same time for a 1.18% increase after the previous session closed at $102.41a barrel.

Crude oil stocks in the US fell by 3.4 million barrels last week, according to data by the American Petroleum Institute on Tuesday. The expectation was a decrease of 1.1 million barrels in oil inventories. Larger than expected drop in stocks pushed oil prices higher.

Additionally, prices rose after the European Union announced that it is planning new sanctions against Russia, including a ban on oil imports.

European Commission President Ursula von der Leyen is expected to announce the details of the EU's sanction plans against Russia later today.

Meanwhile, investors are expecting crude oil supply data from the US Energy Information Administration due later in the day.

Additionally, the Organization of the Petroleum Exporting Countries and allies (OPEC+) will hold a virtual meeting on Thursday to discuss steps to alleviate supply concerns.

By Zeynep Beyza Kilic

Anadolu Agency

energy@aa.com.tr