Investing.com - West Texas Intermediate oil futures traded near a one-week high 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 December traded at $81.81 a barrel during European morning hours, up 39 cents, or 0.48%.
A day earlier, Nymex oil prices rose 42 cents, or 0.52%, to settle at $81.42 a barrel.
Futures were likely to find support at $79.44 a barrel, the low from October 27, and resistance at $82.37 a barrel, the high from October 23.
Wednesday’s government report was expected to show that U.S. crude oil stockpiles rose by 3.4 million barrels last week, while gasoline stockpiles were forecast to decrease by 1.0 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories increased by 3.2 million barrels in the week ended October 23.
The report also showed that gasoline stockpiles fell by 3.7 million barrels, while distillate stocks decreased by 3.0 million barrels.
Meanwhile, market players are looking ahead to the outcome of the Federal Reserve's policy meeting later in the day, at which it is widely expected to announce the end of its bond-buying stimulus program, known as quantitative easing.
Investors will be scrutinizing the Fed's statement for wording that reflects expectations that interest rates will remain on hold near zero levels for a "considerable time."
Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery tacked on 32 cents, or 0.37%, to hit $86.33 a barrel.
London-traded Brent prices have fallen nearly 26% since June, when it climbed near $116, while WTI futures are down almost 25% from a recent peak of $107.50 in June.
Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.
Some market analysts believe that only a cut in production by the oil cartel will halt the decline in prices.
Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.