MTECHTIPS:-WTI oil rallies back above $40 after huge gasoline withdrawal

MTECHTIPS:-WTI oil rallies back above $40 after huge gasoline withdrawal

West Texas Intermediate oil futures climbed back above the $40-level in North America trade on Wednesday, after data showed that gasoline supplies in the U.S. fell sharply last week, offsetting a surprise build in crude stockpiles. Crude oil for September delivery on the New York Mercantile Exchange jumped 72 cents, or 1.8% to trade at $40.23 a barrel by 14:38 GMT, or 10:38 AM ET. Prices were at around $40.05 prior to the release of the inventory data.The U.S. Energy Information Administration said in its weekly report that gasoline inventories decreased by 3.3 million barrels in the week ended July 29, much more than the expected 0.2-million-barrel decline. The report also showed that crude oil inventories rose by 1.4 million barrels last week. Market analysts' expected a crude-stock decline of 1.4 million barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 1.3 million barrels. Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, fell by 1.12 million barrels last week, the EIA said.

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