Investing.com - Oil prices pushed higher in European trade on Wednesday, after posting modest overnight losses, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a drop of 1.7 million barrels.
Gasoline stockpiles are expected to fall by 0.4 million barrels while stocks of distillates, which include heating oil and diesel, are expected to rise by 0.3 million barrels, according to analysts.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories fell by 5.2 million barrels in the week ended June 17. Gasoline inventories declined by 1.5 million barrels and distillate inventories fell by 1.7 million barrels, the API said.
Crude oil for July delivery on the New York Mercantile Exchange rose to a session peak of $50.45 a barrel, the most since July 10. It last traded at $50.37 by 07:58GMT, or 3:58AM ET, down 52 cents, or 1.04%.
A day earlier, New York-traded oil prices shed 11 cents, or 0.22%. U.S. crude futures are up nearly 85% since falling to 13-year lows at $26.05 on February 11 as a decline in U.S. shale production boosted sentiment.
However, with prices now at levels that make drilling economical for some firms, the rig count might start rising soon and the decline in U.S. production may slow.
According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by nine last week to 337, the third straight weekly rise.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery tacked on 42 cents, or 0.83%, to trade at $51.04 a barrel after hitting an intraday high of $51.13, a level not seen since June 10.
On Monday, London-traded Brent futures dipped 3 cents, or 0.06%, as investors counted down to the upcoming British vote to decide whether to remain in the European Union.
Politicians on both sides of the debate will be making their last arguments today ahead of polling stations opening Thursday at 6:00GMT, or 7:00AM London time. Polls will close at 21:00GMT, or 10:00PM in London. The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling.
Meanwhile, Brent's premium to the WTI crude contract stood at 67 cents a barrel, compared to a gap of 77 cents by close of trade on Tuesday.