Oil prices moved higher in early Wednesday trading after an industry report showed a large decline in crude oil inventories in the United States.

The American Petroleum Institute reported a decline in weekly inventory of 7.5 million barrels, compared with a build of 1.4 million barrels from the week prior. Inventory data has been fluid as U.S. markets move in response to seasonal storms in the U.S. Gulf of Mexico and problems with the Colonial pipeline in the southern United States.

Crude oil prices moved higher in late trading Tuesday in anticipation of the draw. The price for Brent crude oil gained 1.5 percent from the previous close to start trading in New York at $46.58 per barrel. West Texas Intermediate, the U.S. benchmark price for crude oil, was up 1.9 percent to open the day at $44.91 per barrel.

Geoffrey Craig, a futures editor for S&P Global Platts, said in an emailed statement inventory levels have been on a short-term decline, but are still above the historic average.

"For the week ended Sept. 9, crude stocks were 510.8 million barrels, or 135 million barrels above the five-year average," he said.

Formal inventory data are expected later Wednesday from the U.S. Energy Information Administration, which at times has been less bullish than API. The rally in crude oil prices may be short-lived as Libya announced it could be in a position to return to full market capacity within a year and exports from Nigeria, shuttered in part by conflict, could regain strength.

U.S. Federal Reserve Chair Janet Yellen takes the podium later this afternoon to discuss U.S. monetary policies and trends. Some economists hinted about a rate hike earlier this year, though recent data suggests the U.S. appetite for the end of easy-money policies is waning.

The Federal Reserve is not expected to change course following recent data showing economic pressures remain in the United States, including a recent string of lackluster reports about the housing market.