Crude prices showed a smart pullback on Wednesday August 10, 2011 and rose over 4 percent in the day supported by sharp pullback in the equities market and after a government report showed oil inventories fell last week. US crude stocks fell 5.2 million barrels last week, the US Energy Information Administration's said in its weekly inventory report. Distillate stocks fell 700,000 barrels and gasoline stockpiles fell 1.6 million barrels.

The prices also got a boost with a preliminary government data stating that China's implied oil demand in July rose 7.7 percent over a year earlier, picking up from June, which had the slowest growth in over two years.

Benchmark crude for September rose $3.59, or 4.53 percent, to settle at $82.89 a barrel, after trading in a range from $79.53 to $83.14 on the New York Mercantile Exchange. In London, Brent crude settled at $106.68 a barrel, gaining $4.11 on the ICE.