MTECHTIPS:-WTI oil futures jump above $31 ahead of weekly supply report

MTECHTIPS:-WTI oil futures jump above $31 ahead of weekly supply report

West Texas Intermediate oil futures recovered from 12 year lows on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell last week. The U.S. Energy Information Administration will release its weekly report on oil supplies at 15:30 GMT, or 10:30AM ET, Wednesday. After markets closed Tuesday, the American Petroleum Institute, an industry group, surprised market participants and said that U.S. oil inventories declined by 3.9 million barrels in the week ended January 8, compared to expectations for an increase of 2.0 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell by 302,000 barrels, API said. Crude oil for delivery in February on the New York Mercantile Exchange rose to a session high of $31.38 a barrel, before trading at $31.28 by 09:00 GMT, or 4:00AM ET, up 83 cents, or 2.74%. A day earlier, New York-traded oil futures tumbled to $29.93, the lowest level since December 2003, before ending at $30.44, down 97 cents, or 3.09%, as ongoing worries over the health of China’s economy fueled concerns that a global supply glut may stick around for longer than anticipated. The U.S. benchmark has lost nearly 17% since 2016 began. Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery tacked on 68 cents, or 2.2%, to trade at $31.63 a barrel, after sinking to $30.50 on Tuesday, a level not seen since April 2004.

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