WTI oil futures remain higher after U.S. supply data

Investing.com - West Texas Intermediate oil futures held on to gains on Wednesday, after data showed that oil supplies in the U.S. fell for the seventh consecutive week last week.

On the New York Mercantile Exchange, crude oil for August delivery rose 73 cents, or 1.21%, to trade at $61.18 a barrel during U.S. morning hours. Prices were at around $61.62 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 2.7 million barrels in the week ended June 12.

Market analysts' expected a crude-stock fall of 1.7 million barrels, while the American Petroleum Institute late Tuesday reported a decline of 2.9 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 112,000 barrels last week, compared to estimates for a drop of 850,000 barrels.

Total U.S. crude oil inventories stood at 467.9 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.

The report also showed that total motor gasoline inventories rose by 0.5 million barrels, while distillate stockpiles increased by 0.1 million barrels.

Energy traders have been paying close attention to gasoline stockpiles in recent weeks as the U.S. driving season entered its peak gasoline demand period.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery climbed $1.08, or 1.69%, to trade at $64.79 a barrel. On Tuesday, Brent futures lost 25 cents, or 0.39%, to close at $63.70.

The spread between the Brent and the WTI crude contracts stood at $3.61 a barrel, compared to $3.25 by close of trade on Tuesday.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 95.30, up from Tuesday’s lows of 94.80.

Investors looked ahead to the Federal Reserve’s monetary policy statement due later in the session for fresh signals on the timing of a U.S. interest rate hike.

Recent economic reports have indicated that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the U.S. central bank could raise rates as soon as September.

Market players also continued to monitor developments surrounding talks between Greece and its international creditors, amid growing concerns that the country could default on its debt be forced out of the euro zone.

Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the IMF. A default by Greece could lead to the country’s exit from the euro area.