Crude oil futures rallied on Wednesday amid concern over supply, after stockpiles of gasoline and distillate fuels shrank.

Light, sweet crude for August delivery gained 1.20 dollars to 68.97 dollars a barrel on the New York Mercantile Exchange.

Brent crude for August delivery rose 36 cents to 70.53 dollars a barrel on the ICE Futures exchange in London. U.S. commercial crude oil inventories increased last week while stockpiles of gasoline and distillate fuels shrank, the Energy Department reported Wednesday.

In the week ended June 22, the nation's gasoline supplies dropped by 700,000 barrels last week, defying analysts who had been expecting an increase of 1.1 million barrels.

Current levels of gasoline supplies are well below the lower end of average for this time of year. Gasoline supplies are closely watched as the summer driving peak is around the corner.