Oil rebounded after the loss

West Texas Intermediate oil rose after a government report showed U.S. inventories unexpectedly declined last week and as European policy makers weighed bailout options for Cyprus.

Prices advanced as much as 1.1 percent. The Energy Information Administration, the Energy Department’s statistical arm, said stockpiles fell 1.31 million barrels to 382.7 million in the week ended March 15. U.S. crude production slipped 9,000 barrels a day from the highest level since 1992 to 7.15 million. Stockpiles at Cushing, Oklahoma, the largest U.S. oil-storage hub and the delivery point for New York-traded futures, shrank by 286,000 barrels to 49 million, the EIA reported.

Oil climbed before the report as Luxembourg Finance Minister Luc Frieden called for euro-area finance ministers to assemble a new rescue package for Cyprus. Cyprus yesterday rejected an unprecedented levy on bank deposits, causing futures to tumble.

WTI futures for April delivery, which expire today, rose to $93.13 on the New York Mercantile Exchange.

Brent for May settlement increased 71 cents, or 0.7 percent, to $108.16 a barrel on the London-based ICE Futures Europe exchange.