The West Texas Intermediate for February delivery added $1.64, or 2.3 per cent, to settle at $72.76 a barrel on the New York Mercantile Exchange. Brent crude for February delivery increased 1.31 dollars, or 1.8 per cent, to close at 75.29 dollars a barrel on the London ICE Futures Exchange, Xinhua news agency reported.

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The above market reactions came after the US Energy Information Administration (EIA) on Wednesday said the nation's crude oil inventories decreased by 4.7 million barrels during the week ending December 17. Analysts surveyed by S&P Global Platts had expected a decline of 3.9 million barrels in US crude supplies.

At 423.6 million barrels, US crude oil inventories are about 8 per cent below the five year average for this time of year.

According to the EIA, total motor gasoline inventories increased by 5.5 million barrels last week, while distillate fuel inventories increased by 0.4 million barrels.