Investing.com - West Texas Intermediate oil prices bounced off a more than two-week low in European trade on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a slower pace than expected last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 3.3 million barrels. After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 2.6 million barrels in the week ended March 25.
Crude stocks at the Cushing, Oklahoma, delivery hub for WTI declined by 319,000 barrels, the API said, while gasoline and distillate inventories fell by 1.94 million and 95,000 barrels respectively.
Crude oil for May delivery on the New York Mercantile Exchange tacked on 63 cents, or 1.65%, to trade at $38.91 a barrel by 08:20GMT, or 4:20AM ET.
A day earlier, Nymex oil dropped to $37.91, the lowest since March 16, before ending at $38.28, down $1.11, or 2.82%, amid ongoing concerns over a supply glut.
Since falling to 13-year lows at $26.05 on February 11, U.S. crude futures have rebounded by approximately 45% as a decline in U.S. shale production boosted sentiment. However, analysts warned that market conditions remained weak due to an ongoing glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery rose 52 cents, or 1.3%, to trade at $40.37 a barrel. On Tuesday, London-traded Brent futures sank 1.02%, or 2.5%, amid uncertainty over a deal between major producers to cap output.
OPEC member Iran is expected to attend an oil producers meeting in Doha on April 17 to discuss an output freeze, although it may not necessarily partake in negotiations.
Brent futures are up by roughly 45%, since briefly dropping below $30 a barrel on February 11. Short-covering began in mid-February after Saudi Arabia and fellow OPEC members Qatar and Venezuela agreed with non-OPEC member Russia to freeze output at January levels, provided other oil exporters joined in.
Meanwhile, Brent's premium to the WTI crude contract stood at $1.46 a barrel, compared to a gap of $1.57 by close of trade on Tuesday.