Crude falls on U.S. supply report, but narrows losses

Crude futures dropped on Wednesday after weekly supply data revealed the U.S. is awash in crude, though prices bounced back as a bearish report was already priced into trading.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June traded at $101.83 a barrel during U.S. trading, up 0.08%. New York-traded oil futures hit a session low of $101.21 a barrel and a high of $102.07 a barrel.

The June contract settled down 1.83% at $101.75 a barrel on Tuesday.

Nymex oil futures were likely to find support at $99.95 a barrel, the low from April 7, and resistance at $104.97 a barrel, Wednesday's high.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 3.52 million barrels in the week ended April 18, surpassing expectations for a build of 2.27 million barrels.

Total U.S. crude oil inventories stood at 397.7 million barrels as of last week, highs not seen in roughly 80 years.

The EIA said total motor gasoline inventories decreased by 0.27 million barrels, compared to forecasts for a decline of 1.71 million barrels, while distillate stockpiles rose by 0.59 million barrels.

A report from the American Petroleum Institute late Tuesday showed U.S. oil inventories rose by 519,000 barrels last week, while gasoline stocks fell by 3.4 million barrels and distillate stocks increased by 570,000 barrels.

Crude prices fell on Tuesday in anticipation of a bearish supply report, though bottom fishing sent prices rising after the report published, with futures breeching into positive territory at times.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for June delivery were down 0.34%, trading at US$108.90 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$7.07 a barrel.