Crude oil prices soared to near record territory for the year in early Wednesday trading following industry reports of a sizeable drop in oil inventory levels.

Crude oil prices meandered for most of the trading day Tuesday as markets looked for clues in the latest assessment on the health of the global economy from the International Monetary Fund, which downgraded the growth forecast for some of the world's largest players.

The American Petroleum Institute reported U.S. crude oil inventory levels declined 7.6 million barrels, which follows a steady string of API data suggesting the oversupply in the United States that helped drag oil prices below $30 per barrel earlier this year has evaporated.

The price for Brent crude oil shot up 1.9 percent to $51.86 per barrel in early Wednesday trading. West Texas Intermediate, the U.S. benchmark price for oil, was up 2 percent to open the day in New York at $49.69 per barrel.

U.S. Census Bureau data show total U.S. crude oil exports of 657,000 barrels of oil per day in August was 183,000 bpd more than July. The bulk of the oil went to Canada.

API data, if confirmed, would mark the fifth straight week for a decline in U.S. crude oil inventories and comes at a time when Hurricane Matthew threatens offshore storage capacity. Formal data from the U.S. Energy Information Administration is published later in the trading day Wednesday and could make or break the rally.

Crude oil prices, meanwhile, may be rallying to the point that optimism returns to U.S. shale basins idled by the weak market conditions prevalent during the first half of the year. That could in theory put a ceiling on the rally supported in part by a consideration last week from the Organization of Petroleum Exporting Countries to cap production.

Meanwhile, on the economic front, private payroll processor ADP reported the U.S. economy added 154,000 jobs in September. ADP said the figures show some leveling in the labor market, with declines emerging from the manufacturing sector, one of the pillars of the U.S. economy.

"Job gains in September eased a bit when compared to the past 12-month average," Ahu Yildirmaz, vice president and head of the ADP Research Institute, said in a statement. "We also observed softening this month in trade/transportation/utilities, possibly due to a continued tightening U.S. labor market and lackluster consumer spending."