NYMEX crude prices up in Asia after API shows sharp drop in U.S. stocks

Investing.com - Crude oil prices rebounded in Asia on Wednesday after industry data on U.S. stocks showed a sizeable drawdown in the past week.

The American Petroleum Institute, an industry group, said late Tuesday that last week crude stocks fell by 1.9 million barrels, gasoline inventories rose by 719,000 barrels, and distillate supplies rose by 1.7 million barrels.

Analysts expect the U.S. Department of Energy to report crude stocks fell 1.114 million barrels last week and distaillate stocks rose 571,000 barrels, while gasoline stocks eased 157,000 barrels with the actual figures due later Wednesday.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded at $93.02 a barrel, up 0.29%, after hitting an overnight session low of $92.53 a barrel and a high of $93.94 a barrel.

Brent oil, the global oil benchmark, slid 1% to $99.16 a barrel on ICE Futures Europe Tuesday, the lowest settlement price since April 18, 2013.

Also on Tuesday, the U.S. Energy Information Administration lowered its forecasts for oil prices in 2014 and 2015, reflecting higher U.S. production estimates and lower global demand expectations.

U.S. production hit 8.6 million barrels a day in August, the highest monthly level since July 1986, the EIA said. The agency projects average production of 9.53 million barrels a day in 2015, the highest since 1970.

Prices have tumbled since mid-June, as violence in a number of global hot spots hasn't caused an interruption in oil supplies and demand has been tepid, particularly in Europe and Asia.

Brent contracts for delivery in late 2014 and 2015 are more expensive than the front-month October contract, indicating that traders think the market is amply supplied.

Overnight, oil prices moved off nine-month lows, brushing off weak Chinese import data and Friday's soft U.S. jobs report on hopes weekly supply data will reflect solid demand in the world's largest consumer of crude.

Gains were limited due to ongoing expectations U.S. interest rates to rise sooner rather than later, which bolstered the dollar.

Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.