Investing.com - West Texas Intermediate oil futures trimmed gains on Wednesday, despite data showing that oil supplies in the U.S. fell more than expected last week.
On the New York Mercantile Exchange, crude oil for delivery in September advanced 0.2%, or 20 cents, to trade at $101.17 a barrel during U.S. morning hours. Prices were at $101.43 a barrel prior to the release of the supply data.
U.S. oil futures fell to $100.37 a barrel on Tuesday, the lowest since July 16, before settling at $100.97, down 0.69%, or 70 cents.
New York-traded oil futures were likely to find support at $99.60 a barrel, the low from July 16 and resistance at $103.31 a barrel, the high from July 24.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 3.7 million barrels in the week ended July 25, compared to expectations for a decline of 1.5 million barrels.
Total U.S. crude oil inventories stood at 367.4 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 0.4 million barrels, below forecasts for a gain of 1.3 million barrels, while distillate stockpiles rose by 0.8 million barrels, below expectations for an increase of 1.5 million barrels.
Market players now prepared for the outcome of the Federal Reserve’s policy meeting later in the day. The central bank is likely to stick to its timetable to taper its monthly bond purchases by another $10 billion to a total of $25 billion a month.
The Commerce Department said in a report earlier that the U.S. economy grew at an annual rate of 4% in the second quarter, easily surpassing expectations for growth of 3%.
Personal consumption grew 2.5%, well above predictions of 1.9%, the report said, adding to the view that the economic recovery is gaining traction.
The robust data came after payroll processing firm ADP said U.S. non-farm private employment rose by 218,000 in July, below expectations for an increase of 230,000.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery eased down 0.1%, or 10 cents, to trade at $107.62 a barrel, as traders awaited new developments from Ukraine and the Middle East.
The European Union and the U.S. imposed further sanctions against Russia over Moscow's support for separatist rebels in eastern Ukraine on Tuesday, while fighting in the Gaza Strip between Israeli security forces and Hamas militants continued.