Investing.com - Crude prices rebounded strongly in Asia on Wednesday as industry data showed a drop in U.S. stockpiles last week.
On the New York Mercantile Exchange, WTI crude for December delivery traded up 0.95% to $41.05 a barrel.
The American Petroleum Institute said crude stocks last week fell by 482,000 barrels, the first drop in weeks. Separately, Wednesday's government report could show an inventory build of 1.6 million barrels for the week ending on Nov. 13. Last week, U.S. supply levels increased for the seventh straight week pushing crude inventories near their highest levels in at least 80 years.
Overnight, crude futures fell sharply on Tuesday erasing most of their gains from the previous session, as energy traders shifted their focus away from the Paris terrorist attacks back to longstanding concerns related to the supply glut on global energy markets.
On the Intercontinental Exchange (ICE), Brent crude for January delivery wavered between $43.51 and $45.10 a barrel, before closing at $43.59, down 0.97 or 2.20% on the day. On Monday, North Sea brent futures fell to $43.15, their lowest level since Aug. 26, before rallying amid a flurry of French airstrikes in Syria.
The Syrian bombing campaign continued on Tuesday, as Russia bombarded Raqqa with sea-launched cruise missiles, U.S. Defense officials told NBC and CBS News. Overnight, the U.S. also intensified its assault against the Islamic State striking more than 100 tanker trucks used to transfer ISIS oil, a U.S. military spokesman told multiple outlets. In addition, France president Francois Hollande announced plans to travel to Moscow and Washington in an effort to build a coalition against ISIS, the Wall Street Journal reported. Over the weekend, ISIS claimed responsibility for the Paris attacks that claimed the lives of more than 120 civilians and wounded at least 350 others.
In Monday's session, crude futures jumped as much as 3.25% as the bombings of ISIS-controlled oil fields disrupted supply in the region. The airstrikes underscore concerns that prolonged fighting between ISIS and several major World powers could threaten global supply on a long-term basis. Market reactions from catastrophic events such as a terrorist attacks or natural disasters, however, are typically viewed by analysts as fleeting before conditions quickly return to normal.