Crude Oil pared gains on Wednesday to trade almost half a percent lower after industry data showed that U.S. crude stocks rose much more than expected, more than offsetting weakness in the U.S dollar.
Crude gained after reports yesterday showed signs of increased manufacturing output in the U.S. and China, responsible for about 32 percent of global oil consumption. The commodity however pared yesterday's gains after the American Petroleum Institute reported crude inventories rose 2.89 million barrels last week. Gasoline and distillate fuel stockpiles also climbed on a drop in refinery utilization, the report said.
Oil has rallied from below $33 last December but has held in a narrow band of $70 to $82 over the past two months. Some analysts see little chance prices will push above the range, given ample supplies and little sign of strengthening demand. Fresh direction will come later today when the U.S. Energy Information Administration issues its petroleum report.