MTECHTIPS:- U.S. crude pares earlier gains, following bearish supply report

MTECHTIPS:-  U.S. crude pares earlier gains, following bearish supply report

 U.S. crude futures inched down on Wednesday paring earlier gains as domestic crude inventories increased slightly last week, defying expectations for a sharp draw after the American Petroleum Institute reported a considerable decline hours earlier. On the New York Mercantile Exchange, WTI crude for February delivery traded between $30.11 and $31.71 a barrel before settling at $30.40, down 0.04 or 0.15% on the session. Though U.S. crude futures surged as much as 3% in anticipation of a significant inventory reduction, Texas light sweet crude immediately turned negative following the release. WTI crude remained near 12-year lows from Tuesday's session, when it slipped below $30 a barrel for the first time since December, 2003. On the Intercontinental Exchange (ICE), brent crude for March delivery wavered between $29.99 and $31.83 a barrel, before settling at $30.20, down 0.75 or 2.38% on the day. At one point, brent futures fell below $30 a barrel for the first time since April, 2004. Much like its U.S. counterpart, North Sea brent has tumbled more than 15% in 2016, extending severe losses from last year. On Wednesday morning, the U.S. Energy Information Administration (EIA) said in its Weekly Petroleum Status Report that U.S. commercial crude inventories rose by 0.2 million barrels last week for the week ending on January 8. At 482.6 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Investors initially expected a build of 2.5 million barrels on the week, before the API reported a weekly decline of 3.9 million barrels on Tuesday evening.

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