Stockpiles fell by more than one million barrels in last week alone, sending prices soaring in the US.
US West Texas Intermediate crude future rose 1.1 percent to $65.15 per barrel – the highest since December 2014 when prices soared to $65.55 a barrel.
CNBC’s energy correspondent Tom DiChristopher said this decrease in stockpiles shows foreign oil-producing nations like Russia are “achieving their goal of shrinking stockpiles in developed countries”.
He warned economic growth across the globe was increasing demand for oil, contributing to raising prices.
It has also been feared the closure of the Forties pipeline in Scotland could also bump prices further.
All of this will most likely lead to an increase in costs for drivers at petrol pumps, with the price already increasing by 5p per litre from last November.
Further price increases are “almost inevitable”, a spokesman for the RAC said earlier this month.
He said: “If oil stays at this level, pump price hikes will be almost inevitable. With households across the country still feeling the cost of Christmas, this is not the start to 2018 anyone would have wanted.
“It could also negatively affect business and further fuel inflation.”
The RAC said petrol prices in mid-January had surged 5p per litre to 121.27p from November costs, with diesel also rising 3p to 123.97p.
In December a spokesman for the Government urged oil companies against blaming the closure of the Forties pipeline, after a crack was discovered, to boost prices.
He said: “This incident should not have a significant impact on global oil supplies.
“It is important the oil industry does not use this short-term challenge as an excuse to put up the prices of fuel at the pump.”