(MENAFN- AFP) Oil prices rebounded on Wednesday from the previous day's multi-month lows, as dealers awaited the latest update on crude reserves in top consumer the United States.
Gains were capped however by investor caution ahead of the release of minutes from the US Federal Reserve's July monetary policy meeting.
In midday deals, Brent North Sea crude for October delivery advanced 40 cents to $101.96 a barrel, one day after hitting a 14-month low on easing geopolitical tensions.
New York's West Texas Intermediate (WTI) for delivery in September jumped $1.44 to $95.92.
The WTI price had struck a seven-month low Tuesday as speculative traders also sold off ahead of the expiry of the September contract later on Wednesday.
The US government's Department of Energy is due at 1430 GMT to publish its weekly inventories update for the week ending August 15.
American crude oil stockpiles are forecast to have fallen by 900,000 barrels, according to analysts polled by Dow Jones Newswires.
Gasoline stockpiles are expected to drop by 1.3 million barrels, while stocks of distillates, which include heating oil and diesel, are seen sliding 700,000 barrels.
A drop in US stockpiles tends to push prices higher because it indicates strengthening oil demand in the world's biggest crude consuming nation.
Desmond Chua, market analyst at CMC Markets in Singapore said dealers were also squaring positions before they scrutinise the minutes of a two-day Fed meeting that ended on July 30.
Investors will be looking at whether the minutes "reveal anything insightful pertaining to tightening monetary policy", Chua said.
Bank policymakers have said the Fed will hold its near-zero interest rate policy until the US economy strengthens but may raise rates if the jobs market kept improving.
Traders are also continuing to track conflicts in crude producers Libya and Iraq, as well as in Ukraine, a key conduit for Russian gas exports to Europe, analysts said.
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