NYMEX crude rebounds in Asia with investors noting U.S. demand prospects

Investing.com - Crude oil prices staged a slight rebound in Asia on Thursday, more of a technical blip up as investrors noted demand prospects in the U.S. economy.

On the New York Mercantile Exchange, crude oil for delivery in March rose 0.20% to $44.54 a barrel in Asia.

Overnight, West Texas Intermediate oil futures remained under pressure even as the Federal Reserve said the U.S. economy was expanding "at a solid pace" as it largely looked through weakness overseas in a signal that it remains on track to raise interest rates later this year.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 8.9 million barrels in the week ended Jan. 23, higher than expectations for an increase of 4.1 million barrels.

Total U.S. crude oil inventories stood at 406.7 million barrels as of last week, the most in records dating back to August 1982.

The report also showed that total motor gasoline inventories decreased by 2.6 million barrels, compared to expectations for a gain of 0.4 million, while distillate stockpiles declined by 3.9 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery shed 47 cents, or 0.96%, to trade at $49.13 a barrel. On Tuesday, Brent for March delivery jumped $1.44, or 2.99%, to close at $49.60.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.4% to 94.85.

Market players looked ahead to the outcome of the Federal Reserve's policy meeting later in the day, at which it is widely expected to keep policy on hold.

Investors will be scrutinizing the Fed's statement for wording that reflects expectations that interest rates will remain on hold near zero levels for some time to come.