Investing.com - West Texas Intermediate oil futures regained strength 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 November traded at $91.50 a barrel during European morning hours, up 34 cents from a closing price of $91.16 on Tuesday.
A day earlier, U.S. oil prices plunged $3.41. Futures were likely to find support at $90.58 a barrel, the low from September 23, and resistance at $94.90 a barrel, the high from September 30.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles rose by 0.7 million barrels last week, while gasoline stockpiles were forecast to decrease by 0.8 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 464,000 barrels in the week ended September 26, compared to expectations for an increase of 0.9 million barrels.
The report also showed that gasoline stockpiles decreased by 2.5 million barrels, while distillate stocks fell by 1.8 million barrels.
Market players also looked ahead to the release of key U.S. data later in the session for further indications on the strength of the economy and the future path of monetary policy.
Later in the day, the U.S. was to release the ADP report on private sector job creation, as well as a report by the Institute of Supply Management on manufacturing activity.
Meanwhile, investors awaited the release of the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy.
Expectations that the Federal Reserve is growing closer to raising interest rates have boosted the dollar against the euro and the yen.
The Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, traded at 86.18, not far from the previous session's four-year high of 86.33.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery inched up 18 cents to hit $94.86 a barrel during European morning trade.
London-traded Brent prices hit $94.24 on Tuesday, a level not seen since June 2012 as global supplies were seen as ample despite ongoing violence in North Africa and the Middle East.