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WTI oil trades near 3-month high ahead of U.S. supply report, OPEC

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Investing.com -

Investing.com - West Texas Intermediate oil futures held near the previous session's three-month high on Wednesday, as investors awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world's largest consumer.

On the New York Mercantile Exchange, U.S. crude oilfor delivery in July held in a range between $104.19 and $104.67 a barrel. Prices last traded at $104.63 during European morning hours, up 0.26%, or 28 cents.

U.S. oil futures rose to $105.06 a barrel on Tuesday, the most since March 3, before turning lower to settle at $104.35, down 0.06%, or 6 cents.

New York-traded oil futures were likely to find support at $102.62 a barrel, the low from June 9 and resistance at $105.06 a barrel, the high from June 10.

Wednesday's government report was expected to show that U.S. crude oil stockpiles fell by 1.9 million barrels last week, while distillate stockpiles, including heating oil and diesel, were expected to increase by 1.2 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 1.5 million barrels in the week ended June 6, compared to expectations for a decline of 1.2 million barrels.

The report also showed that distillate stocks decreased by 0.3 million barrels, while gasoline stockpiles declined by 0.5 million barrels.

Oil traders were also awaiting the outcome of Wednesday's meeting of the Organization of Petroleum Exporting Countries in Vienna, amid expectations the organization will maintain its production quota at 30 million.

The 12-member group is responsible for approximately 40% of global supply.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery tacked on 0.33%, or 35 cents, to trade at $109.22 a barrel, while the spread between the Brent and U.S. crude contracts stood at $4.59 a barrel.

The spread narrowest to the lowest since April as receding stockpiles at Cushing, Oklahoma, the delivery point for Nymex oil futures, eased concerns over a supply glut.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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