NEW YORK, March 23 (Xinhua)-- Oil prices surged on Wednesday after data showed a marked drop in U.S. crude stockpiles.

       The West Texas Intermediate (WTI) for May delivery added 5.66 U.S. dollars, or 5.2 percent, to settle at 114.93 dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery increased 6.12 dollars, or 5.3 percent, to close at 121.60 dollars a barrel on the London ICE Futures Exchange.

       The U.S. Energy Information Administration (EIA) reported on Wednesday that the nation's oil inventories decreased by 2.5 million barrels during the week ending March 18. Analysts surveyed by S&P Global Commodity Insights had expected the EIA publications to show crude inventories unchanged for the week.

       According to the EIA, total motor gasoline inventories decreased by 2.9 million barrels last week, while distillate fuel inventories decreased by 2.1 million barrels.

       Meanwhile, concerns about supply shortages remain on the oil market amid geopolitical uncertainties over Ukraine.

       European Union nations are divided on whether to ban imports of Russian crude and oil products, but this might change if the Russia-Ukraine conflict further escalated, analysts said.

       "How things develop in Ukraine will likely make a big difference," Carsten Fritsch, energy analyst at Commerzbank Research, said Wednesday in a note.

       The International Energy Agency warned last week that "the prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock."

       It estimated that three million barrels per day of Russian oil output could be shut in from April as sanctions take hold and buyers shun exports.