--API data show larger-than-expected rise in crude stocks
--Market focused on EIA's 10:30 a.m. EDT report
--Crude stocks in sight of highest October level since 1930
NEW YORK--U.S. crude-oil futures prices traded lower Wednesday ahead of inventory data expected to show stockpiles continuing to grow amid rising output and sluggish refinery demand.
Crude-oil stocks have gained 24.2 million barrels, or 6.8%, over the past five weeks, according to the Energy Information Administration. Analysts surveyed by The Wall Street Journal expect EIA data due at 10:30 a.m. EDT to show stocks rose by 2.2 million barrels in the week ended Oct. 25.
The American Petroleum Institute, a trade group, said in its report released last Tuesday afternoon that crude stocks climbed by a much larger 5.88 million barrels.
A gain at the forecasted 2.2 million barrels would lift stocks to near 382 million barrels. That not only would keep stocks at their highest level since June, but would also be a record highest for this time of year, according to EIA weekly data, which began in 1982.
Stocks would be at the highest level for the end of October since 1930 on EIA monthly data.
Light, sweet crude for November delivery was 87 cents lower, at $97.33 a barrel on the New York Mercantile Exchange.
Rising U.S. inventories in recent weeks have slashed prices from a $110.53 a barrel on Sept. 6, which was the highest level since May 2011, to as low as $96.86 a barrel last week, the lowest level since June 28.
ICE Brent crude oil for December was 7 cents higher, at $109.08 a barrel, gaining support from worries about disruptions in Libya oil output. Domestic disputes have cut Libyan output to below 300,000 barrels a day in recent days, about 1 million barrels a day below average levels in the second quarter.
Traders also will be closely watching a scheduled 2 p.m. EDT statement due out at the end of the Federal Reserve's two-day policy meeting.
Analysts expect the Fed to keep its $85-billion-per month bond-buying program in place, while looking for stronger signals from economic indicators before it begins to scale back the stimulus program.
Jim Ritterbusch, president of Ritterbusch & Associates, of Galena, Ill., said the impact of the Fed's policy, which has been support for oil prices, could prevent crude prices from dropping as much as they otherwise might.
"While we can certainly construct a bearish case for values in the low $90 region based on pure fundamental merits, such a price decline will continue to be challenged by an accommodative U.S. Fed policy," he said in a note to clients. Mr. Ritterbusch doesn't expect the Fed to begin tapering "until the first quarter of next year at the earliest."
Analysts also expect the EIA data to show gasoline stocks dropped by 100,000 barrels last week, while distillate stocks [diesel/heating oil] fell by 400,000 barrels, while refineries edged operations higher by 0.1 percentage point. API reported gasoline stocks rose 740,000 barrels, while distillate stocks fell 2.7 million barrels and refinery operations rose by 0.7 point.
November reformulated gasoline blendstock futures for November delivery rose 1 cent, to $2.6198 a gallon. November heating oil futures were 1.16 cents higher, at $2.9757 a gallon. Both contracts expire at Thursday's settlement.
Write to David Bird at david.bird@wsj.com
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