MTECHTIPS:- Oil futures erase gains after bearish U.S. supply data

MTECHTIPS:- Oil futures erase gains after bearish U.S. supply data

West Texas Intermediate oil futures erased gains on Wednesday, after data showed that gasoline and distillate supplies in the U.S. rose sharply last week, underlining concerns over a slowing demand for oil products. Crude oil for delivery in February on the New York Mercantile Exchange shed 18 cents, or 0.59%, to trade at $30.26 a barrel by 15:35GMT, or 10:35AM ET. Prices were at around $31.31 prior to the release of the inventory data The U.S. Energy Information Administration said in its weekly report that gasoline inventories jumped by 8.4 million barrels in the week ended January 8, compared to expectations for a gain of 2.7 million barrels, while distillate stockpiles rose by 6.1 million barrels. Crude oil inventories increased by 0.2 million barrels last week. Market analysts' expected a crude-stock rise of 2.5 million barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 3.9 million barrels. Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 97,000 barrels last week, the EIA said. Total U.S. crude oil inventories stood at 482.6 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years. A day earlier, New York-traded oil futures tumbled to $29.93, the lowest level since December 2003, as ongoing worries over the health of China’s economy fueled concerns that a global supply glut may stick around for longer than anticipated.

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