The U.S. Energy Department says oil supplies fell by 800,000 barrels last week, as prices continue to climb toward $100 a barrel.
Crude oil prices rose above $98 a barrel during trading in New York Wednesday as the dollar weakened and investors anticipated the drop in U.S. stockpiles.
Industry experts say it is inevitable that oil will reach the $100 mark.
Investors have been buying oil to counter the risks of inflation posed by the weak dollar. As the dollar declines in value, oil becomes cheaper for foreign investors.
A report from the International Energy Agency, IAEA, Wednesday says oil costs will continue to rise through the year 2030, as demand rises, particularly in China and India.
Some information for this report was provided by AFP, AP and Reuters.