Investing.com - West Texas Intermediate oil prices edged lower in European trade on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose 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 gain of 3.0 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 8.8 million barrels in the week ended March 18, significantly more than forecasts for a gain of 2.7 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub for WTI declined by 1.3 million barrels, the API said, while gasoline and distillate inventories fell by 4.3 million and 391,000 barrels respectively.
Crude oil for May delivery on the New York Mercantile Exchange shed 18 cents, or 0.43%, to trade at $41.27 a barrel by 08:50GMT, or 4:50AM ET. A day earlier, Nymex prices dipped 7 cents, or 0.17%.
Since falling to 13-year lows at $26.05 on February 11, U.S. crude futures have rebounded by approximately 45% as a decline in U.S. shale production boosted sentiment.
However, analysts warned that market conditions remained weak due to an ongoing glut. U.S. crude stockpiles currently stand at all-time highs above 520 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery declined 2 cents, or 0.05%, to $41.77 a barrel. On Tuesday, London-traded Brent futures tacked on 25 cents, or 0.6%, as continued hopes major oil producers will discuss a potential output freeze lifted prices.
Producers from the Organization of the Petroleum Exporting Countries and non-members are due to meet on April 17 in Qatar discuss the output freeze. But it isn’t clear exactly which, or how many, OPEC and non-OPEC members will attend the meeting.
Brent futures are up by roughly 45%, since briefly dropping below $30 a barrel on February 11. Short-covering began in mid-February after Saudi Arabia and fellow OPEC members Qatar and Venezuela agreed with non-OPEC member Russia to freeze output at January levels, provided other oil exporters joined in.
Meanwhile, Brent's premium to the WTI crude contract stood at 50 cents a barrel, compared to a gap of 34 cents by close of trade on Tuesday.