Oil prices stabilized after a two-day rally as rains helped slow the spread of wildfires that had disrupted crude production in Canada.
Brent crude hit a three-week high, closing at $65.56 a barrel on Tuesday, while WTI settled at $63.32.
One Canadian operator has resumed production at a site after halting operations last week when wildfires forced the world's fourth-largest oil producer to cut its output by 7%.
The American Petroleum Institute (API) reported US crude inventories fell by 3.28 million barrels last week.
Oil rose at the start of the week as OPEC+'s decision to boost July output matched forecasts, easing fears of a larger production hike. However, prices remain 12.63% below last year's levels amid persistent concerns about oversupply and potential demand risks from US-driven trade tensions.