Occidental Petroleum shares up on inventory report

The Los Angeles-based oil producer's shares advanced $4.74, or 6.2 percent, to close at $80.69. Earlier in the session, the stock peaked at $81.70.

In its weekly inventory report, the Energy Information Administration said U.S. gasoline supplies fell by 3.5 million barrels last week, surprising analysts who had predicted gas supplies would climb by 400,000 barrels.

The drop suggested record oil prices have failed to dampen U.S. fuel demand as some energy market analysts had anticipated.

The report also showed U.S. crude stockpiles also fell by 100,000 barrels last week, less than the 1.3 million barrels analysts had predicted.

Light, sweet crude for September delivery jumped $4.58 to settle at $126.77 a barrel on the New York Mercantile Exchange.