Oil prices extend gains, rising more than 2% after the latest U.S. data pointed to a large drop in gasoline inventories and cooling inflation. The U.S. oil gauge WTI is up 2.3% at $67.73 a barrel, while Brent crude rises 2% to $70.

Oil prices rose on Wednesday morning after the EIA reported a smaller than expected increase in crude oil inventories

U.S. crude oil inventories increased for a second consecutive week with an increase in production and net imports, while gasoline stocks fell more than expected as demand picked up, according to data released Wednesday by the U.S. Energy Information Administration.

Oil futures gain as the EIA's report of a 1.4 million barrel increase in U.S. crude oil stocks is offset by a bigger-than-expected 5.7 million drawdown in gasoline inventories. U.S. inflation for February came in lower than expected,