Crude oil is spiking after the biggest inventory drop in nearly 2 decades

Crude oil prices spiked after government data showed an outsized drop in inventories last week.

The Energy Information Administration said on Thursday that commercial crude oil inventories fell by 14.5 million barrels. According to Investing.com, analysts had expected a build in inventories by 0.225 million barrels. The drop was the largest dating back to 1999, according to Bloomberg.

Gasoline stocks fell by 4.2 million barrels, also more than forecast.

Following the EIA's release, West Texas Intermediate crude oil futures in New York jumped by more than 3% to as high as $47.16 per barrel.

As Barclays commodities analysts recently noted, the EIA has acknowledged that the weekly inventories data may overstate consumption.

Oil prices have recently fluctuated on reports of a production agreement among members of the oil cartel OPEC when they meet later in September.

Here's a chart showing the jump in oil futures: