Oil Pares Gains After API Reports Surprise Supply Increase

Oil Pares Gains After API Reports Surprise Supply Increase

(Bloomberg) -- Oil pared earlier gains after the American Petroleum Institute was said to report an unexpected U.S. crude inventory gain and a build in gasoline stockpiles.

Crude supplies rose 806,000 barrels last week, according to people familiar with the API data. The crude build would be first since May if Energy Information Administration data confirms it Wednesday. Analysts surveyed by Bloomberg expected a crude stockpile decline of about 4.5 million barrels. Gasoline stockpiles increased 3.3 million barrels, the API was said to report.

Futures in New York earlier rose 1.5% on Tuesday as broader markets rebounded after a virus-fueled selloff. Oil declined the most since September on Monday, as countries around the world attempt to curb the spread of the highly transmissible delta variant of Covid-19.