WTI oil remains in negative territory after weekly supply data

Investing.com - West Texas Intermediate oil futures remained deep in negative territory on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level since 1982, exacerbating fears over a glut in supplies.

On the New York Mercantile Exchange, crude oil for delivery in March lost $1.17, or 2.53%, to trade at $45.06 a barrel during U.S. morning hours. Prices were at around $44.70 a barrel prior to the storage report.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 8.9 million barrels in the week ended January 23, higher than expectations for an increase of 4.1 million barrels.

Total U.S. crude oil inventories stood at 406.7 million barrels as of last week, the most in records dating back to August 1982.

The report also showed that total motor gasoline inventories decreased by 2.6 million barrels, compared to expectations for a gain of 0.4 million, while distillate stockpiles declined by 3.9 million barrels.

A day earlier, New York-traded oil futures surged $1.08, or 2.39%, to settle at $46.23 a barrel as the U.S. dollar weakened after data showed that orders for durable goods unexpectedly dropped 3.4% in December.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery shed 47 cents, or 0.96%, to trade at $49.13 a barrel. On Tuesday, Brent for March delivery jumped $1.44, or 2.99%, to close at $49.60.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.35% to hit 94.60 after falling to almost one week lows of 93.95 in the previous session.

Market players looked ahead to the outcome of the Federal Reserve's policy meeting later in the day, at which it is widely expected to keep policy on hold.

Investors will be scrutinizing the Fed's statement for wording that reflects expectations that interest rates will remain on hold near zero levels for some time to come.