Investing.com - West Texas Intermediate oil futures bounced off a six-month low struck in the previous session on Wednesday, as investors awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
On the New York Mercantile Exchange, crude oil for delivery in September inched up 0.25%, or 24 cents, to trade at $97.63 a barrel during European morning hours. Prices held in a narrow range between $97.36 and $97.73.
U.S. oil futures fell to $97.00 a barrel on Tuesday, the lowest since February 5, before settling at $97.38, down 0.93%, or 91 cents.
New York-traded oil futures were likely to find support at $96.80 a barrel, the low from February 5 and resistance at $98.67 a barrel, the high from August 5.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles fell by 1.8 million barrels last week, while gasoline stockpiles were forecast to increase by 0.3 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 5.5 million barrels in the week ended July 25, compared to expectations for a decline of 1.9 million barrels.
The report also showed that gasoline stockpiles decreased by 3.6 million barrels, while distillate stocks fell by 544,000 barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 0.33%, or 35 cents, to trade at $104.96 a barrel, as concerns mounted over escalating tensions in Ukraine.
Poland's foreign minister, Radoslaw Sikorski, warned on Tuesday that Russian troops were massing near the Ukraine border either to put pressure on the country or to invade it.
The news came after Russian President Vladimir Putin ordered his government to prepare retaliatory measures against U.S. and European sanctions imposed on Moscow last week, in response to the country’s support of pro-Russia rebels in eastern Ukraine.