International crude oil prices rebounded from lows of the session to settle higher on Wednesday as U.S. crude and fuel inventories tightened further.
NYMEX heating oil and gasoline futures also ended with gains on Wednesday as supplies of gasoline hit a 2-year low, pointing to strong demand.
Additionally, overall product supplied rebounded in the most recent week, with the four-week average of supply from refineries hitting 20.9 million barrels per day, less than 1% off of 2019 levels.
Domestic crude oil prices recouped some of its losses and ended marginally in the red, tracking overseas prices, while energy index ended in the green on Wednesday.
U.S. crude stocks fell by 431,000 barrels in the week to Oct. 15 to 426.5 million barrels, compared with expectations for a 1.9 million-barrel rise, the U.S. EIA said on Wednesday.
U.S. stocks at the Cushing, Oklahoma delivery hub fell by 2.3 million barrels to 31.2 million barrels. their lowest level since October 2018, pointing to tightness in the market that may take some time to improve.
U.S. gasoline stocks fell by a more-than-expected 5.4 million barrels in the week to 217.7 million barrels, the lowest since November 2019, the EIA said, while distillate stocks fell by 3.9 million barrels to not seen since April 2020.
International oil prices have started with small gains this Thursday morning in Asian trade after as U.S. crude and fuel inventories tightened further, with supplies of gasoline hitting a two-year low, pointing to strong demand.
NYMEX Gasoline and Heating oil futures have started flat this Thursday morning in Asian trade.
Technically, if WTI Crude Oil November trades above $83.00 level, it could test the Resistances zones at $84.03-$84.98 levels. Support is at $83.20-$82.50 levels.
Domestic crude oil prices could start with small gains this Thursday morning, tracking a positive start in overseas prices.
On the domestic front, MCX Crude Oil November above 6200 could see a bullish momentum up to 6250-6330 levels. Support is at 6170-6120 levels.
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