Commercial oil stocks for the OECD rose in January 2018 and were still about 74 million barrels over the latest five-year average.
The markets then have raised their concern on the declining crude oil prices as the OPEC outlook failed to withstand worries from the market regarding the growing U.S. crude which is also expected to rise in the coming years.
"Part of that (inventory fall) is the shape of the oil curve which makes it uneconomic to store product", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
US West Texas Intermediate (WTI) crude futures were at $62.70 a barrel at 0602 GMT, down 7 cents from their last settlement.
Woodside Petroleum, Australia's largest oil and gas company, was up 0.56 percent following those increases in prices.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.7 million barrels, the EIA said. Oil prices have come under pressure in recent weeks in tandem with a broader market selloff, along with investor anxiety over growing output from US shale.
With the market in backwardation, where crude prices are now higher than the future prices, traders say it's no longer profitable to store crude.
The Energy Information Administration calculates that daily output, which was the highest since 1972 last year, could hit a new record of 10.6 million barrels this year, the Wall Street Journal reports.
Ahead of proposed plan by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members led by Russian Federation to make permanent their cooperative agreement on putting a cap on oil production, Nigeria has urged oil companies operating in the country to start ensure drastic reduction in production cost per barrel.
A member of Vitol's executive committee, Chris Bake agreed that production cuts from OPEC and friends, coupled with strong demand have led to "a visible track down in oil inventories". Weekly U.S. production fell by 1,000 barrels from a record high.
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"As President of the OPEC Conference, you have shown exemplary vision and leadership through 2017 with your stewardship of the implementation of the "historical" agreement to seek oil market stability among some 20 OPEC and non-OPEC countries to the benefit of producing and consuming nations alike", said Malcolm Brinded CBE, President, Energy Institute.