NEW YORK (CNNMoney.com) -- Oil rose more than 3% Wednesday, as world financial markets rebounded from losses the day before and traders waited for the latest government report on U.S. energy stockpiles.
What prices are doing: Crude for July delivery rose $2.09, or about 3%, to $70.84 a barrel in global trading Tuesday.
Gasoline prices fell for the 20th consecutive day, slipping to $2.771 a gallon from $2.78 the day before, according to a survey by motorist group AAA. In that time period, the price has dropped 15.8 cents, or nearly 5.4%.
What's moving the market: Lower prices on stocks and oil lured buyers on Wednesday, after financial markets in Asia and Europe plummeted the day before on fears about growing political tensions in Korea and continued concerns about Europe's debt crisis.
Meanwhile, oil traders will be watching for a weekly inventory report from the U.S. Energy Information Administration, due at 10:30 a.m. ET.
Inventories have been rising faster than demand can keep up, even as the peak summer driving season nears. That discourages oil traders from holding the next month's futures contracts.
Analysts are expecting the government report to show crude stocks rose 100,000 barrels last week and gasoline supply to be up 150,000 barrels. They're also forecasting distillate fuel, a category that includes heating oil and diesel, to be up by 200,000 barrels.
Traders will be looking to see how inventories fare in Cushing, Okla., the NYMEX contract delivery point. Cushing inventories reached a record high of 37.99 million barrels last week.
What analysts are saying: "If we have continued strength in the stock market, that will bode well for strength in the energy markets," said Dan Flynn, energy trader with PFG Best.
Traders are already forecasting growing inventories, so unless the weekly supply report shows completely unexpected numbers, oil shouldn't make significant swings on the news.
