By Nick Godt, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures bounced back Wednesday, a reversal following their biggest one-day slump in eight months, as the dollar gave back prior-session gains scored after China spooked financial markets with an interest-rate hike.
Traders’ attention turned to what weekly data on U.S. petroleum supplies from the Energy Department will show.
Crude for November delivery traded up 43 cents, or 0.5%, at $79.92 a barrel.
On Tuesday, the contract slumped 4.3%, the biggest one-day drop since February, after China’s surprise move. But by Wednesday, markets tried to put Beijing’s actions in perspective, according to Mike Fitzpatrick, vice president of energy trading at MFGlobal.
“China’s attempt to slow its economy [hasn’t] had an impact on oil and fuel demand,” he wrote in a note.
Late Tuesday, the American Petroleum Institute estimated an increase of 2.3 million barrels of crude oil in the nation’s inventories for the week ended Oct. 15, slightly above expectations.
The government’s data, watched more closely by energy traders, are scheduled for release at 10.30 a.m. Eastern.
Analysts polled by Platts are looking for an increase of 2.1 million barrels in crude for the latest week.
