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WTI oil futures extend gains after bullish U.S. supply data

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© Reuters. U.S. oil futures add to gains after weekly supply data

Investing.com – West Texas Intermediate oil extended gains on Wednesday, after data showed that oil supplies in the U.S. fell more than expected last week.

for delivery in September on the New York Mercantile Exchange tacked on 82 cents, or 1.79%, to trade at $46.56 a barrel during U.S. morning hours. Prices were at around $46.33 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. fell by 4.4 million barrels in the week ended July 31.

Market analysts’ expected a crude-stock fall of 1.5 million, while the American Petroleum Institute late Tuesday reported a decline of 2.4 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 542,000 barrels last week, compared to forecasts for a decline of 200,000 and following a drop of 212,000 barrels a week earlier.

Total U.S. crude oil inventories stood at 455.3 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 increased by 0.8 million barrels, while rose by 0.7 million barrels.

Elsewhere, on the ICE Futures Exchange in London, for September delivery rose 85 cents, or 1.71%, to trade at $50.84 a barrel. On Tuesday, London-traded Brent prices inched up 47 cents, or 0.95%, to end at $49.99.

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Brent futures plunged to a six-month low of $49.36 on Monday. Futures tumbled $11.39, or 18.6%, last month as ongoing worries over a global supply glut drove down prices.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $4.28 a barrel, compared to $4.25 by close of trade on Tuesday.

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