Investing.com - West Texas Intermediate oil futures rebounded on Tuesday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
Crude oil for delivery in November on the New York Mercantile Exchange tacked on 49 cents, or 1.1%, to trade at $44.92 a barrel during U.S. morning hours. A day earlier, Nymex oil prices plunged $1.27, or 2.78%.
The American Petroleum Institute will release its inventories report Tuesday, while Wednesday’s government report could show crude stockpiles fell by 0.5 million barrels in the week ended September 25.
Nymex oil prices were further supported amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. decreased by four last week to 640, the fourth straight weekly decline.
A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery inched up 56 cents, or 1.17%, to trade at $47.90 a barrel during morning hours in New York.
On Monday, Brent futures sank $1.26, or 2.59%, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
Crude oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.97 a barrel, compared to $2.98 by close of trade on Monday.