U.S. oil futures decline ahead of weekly supply data

                  West Texas Intermediate oil futures declined 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 oil for delivery in September dipped 0.41%, or 41 cents, to trade at $101.98 a barrel during European morning hours. Futures held in a tight range between $101.80 and $102.34 a barrel.

U.S. oil futures ended Tuesday’s session down 0.46%, or 47 cents, to settle at $102.39 a barrel.

New York-traded oil futures were likely to find support at $101.48 a barrel, the low from July 21 and resistance at $103.45 a barrel, the high from July 22.

Wednesday’s government report was expected to show that U.S. crude oil stockpiles fell by 2.8 million barrels last week, while gasoline stockpiles were forecast to increase by 1.3 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 555,000 barrels in the week ended July 18, compared to expectations for a decline of 2.6 million barrels.

The report also showed that gasoline stockpiles increased by 3.6 million barrels, while distillate stocks rose by 2.5 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery shed 0.13%, or 14 cents, to trade at $107.19 a barrel, as traders awaited new developments from Ukraine and the Middle East.

The European Union threatened Russia on Tuesday with harsher sanctions over Ukraine, while fighting in the Gaza Strip between Israeli security forces and Hamas militants continued. - investing.com