WTI oil futures rise on bets for U.S. supply drop

Investing.com - West Texas Intermediate oil futures edged higher on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.

On the New York Mercantile Exchange, crude oil for August delivery tacked on 10 cents, or 0.17%, to trade at $60.55 a barrel during European morning hours. A day earlier, Nymex oil prices rose 45 cents, or 0.75%, to end at $60.45.

Wednesday's government report was expected to show that U.S. crude oil stockpiles fell by 1.7 million barrels last week, while gasoline stockpiles were forecast to decline by 0.3 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 2.9 million barrels in the week ended June 12, the second straight weekly decline.

The report also showed that gasoline inventories sank 2.9 million barrels, indicating strong summer demand. 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 inched up 10 cents, or 0.16%, to trade at $63.81 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 $3.26 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 95.20, 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.