Updated from 1:24 p.m. ESTOil prices staged a recovery Thursday, moving above $63 a barrel, as traders reassessed a report on crude inventories and considered supply concerns in Nigeria and Iran. Light, sweet crude for May delivery rose $2.14 to close at $63.91 a barrel on the Nymex. Oil prices briefly hit $64. U.S. oil inventories unexpectedly fell by 1.3 million barrels to 338.6 million barrels last week, according to the Energy Department's weekly update on Wednesday. Analysts had expected a 2.4 million-barrel increase for the week ended March 17. A drop in imports and higher processing rates at refineries helped draw down inventories. Despite the decline -- the first in six weeks -- supplies remain 9% above a year ago. Crude prices have remained high thanks to a mix of supply problems in Nigeria, where daily output is down 25% because of attacks by militants, and an ongoing standoff with Iran over its nuclear ambitions. On Thursday, Italian oil company ENI said it could not honor its export commitments on its Brass River crude after a pipeline attack last week, Reuters reported. The pipeline carries 75,000 barrels per day. The U.N. Security Council has been discussing what strategy to take against Tehran, OPEC's second-largest crude producer. Economic sanctions have been floated, but aren't likely since they would trim world crude supplies and drive up prices. Still, some analysts believe crude prices are in for a correction. "In the absence of a new supply threat or dangerous geopolitical shift, holders of length will become increasingly nervous and reluctant to hold positions much longer," said John Kilduff, an energy analyst with Fimat USA in New York. "This is the core of our belief in a correction." Unleaded gasoline picked up 8 cents, or 5%, to finish at $1.81 a gallon, nearly erasing its fall on Wednesday. Traders are trying to figure out if there are enough supplies to accommodate an inevitable drawdown as the deadline for phasing out MTBE, a gasoline additive linked to water pollution, by May 31.