Oil hit its highest price in more than three years Wednesday as government data showed U.S. stockpiles fell by more than analysts were expecting.

Light, sweet crude for May delivery rose $1.95, or 2.9%, to $68.47 a barrel on the New York Mercantile Exchange, the highest close since December 2014. Brent, the global benchmark, rose $1.90, or 2.7%, to $73.48 a barrel.

On...