Investing.com - West Texas Intermediate oil futures rebounded from the prior session’s steep decline in Europe 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 15:30GMT, or 10:30AM ET, amid expectations for a gain of 3.6 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 2.4 million barrels in the week ended February 5.
Crude stocks at the Cushing, Oklahoma, delivery hub for WTI rose by 715,000 barrels, the API said.
Crude oil for delivery in March on the New York Mercantile Exchange tacked on 75 cents, or 2.7%, to $28.70 a barrel by 08:50GMT, or 3:50AM ET.
A day earlier, prices collapsed $1.75, or 5.89%, to close at $27.94, as a bearish report from the International Energy Agency forecasted a further widening of the supply-demand imbalance on global markets
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery rose 98 cents, or 3.23%, to trade at $31.30 a barrel. On Tuesday, London-traded Brent sank $2.56, or 7.79%, amid ongoing concerns over a global supply glut.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share.
Oversupply issues will be exacerbated further as Iranian exports return to the global oil market.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $2.60, compared to a gap of $2.38 by close of trade on Tuesday.