WTI oil futures inch higher ahead of weekly supply data

Investing.com - U.S. oil futures inched higher in rangebound trade on Wednesday, as investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD92.94 a barrel during European morning trade, up 0.2%. New York-traded oil futures held in a tight range between USD92.63 a barrel and USD93.03 a barrel.

The March contract settled 0.84% higher on Tuesday to end at USD92.78 a barrel as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

Nymex oil futures were likely to find support at USD91.65 a barrel, the low from January 13 and resistance at USD93.56 a barrel, the high from January 10.

Wednesday’s government report was expected to show that crude oil stockpiles fell by 0.6 million barrels last week, while gasoline inventories were forecast to increase by 2.6 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 4.14 million barrels in the week ended January 10, compared to expectations for a decline of 1.6 million barrels.

The data also showed that gasoline stockpiles increased by 5.36 million barrels, above expectations for a gain of 2 million barrels.

Investors also looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus. The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched down 0.15% to trade at USD105.45 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.51 a barrel.

London-traded Brent prices have been under pressure in recent sessions as the prospect of a rise in Iranian oil exports weighed.