Oil prices rally ahead of official stockpile data

Oil prices rebounded Wednesday following previous day's sharp losses, as investors awaited the Energy Information Administration' s (EIA) stockpile data scheduled for release Thursday.

Investors kept a close eye on U.S. crude inventory data, which was one day later than usual due to Monday's Independence Day holiday.

Analysts expected weekly U.S. commercial oil stocks to have fallen for a seventh consecutive week, along with a probable drop in gasoline stockpiles, a Reuters poll showed Wednesday.

On the economic front, according to the minutes from Federal Reserve' s June policy meeting released Wednesday afternoon, U.S. central bank policymakers said it was prudent to wait for more data and the Brexit vote result before raising rates.

Oil prices have traded between 45 U.S. dollars and 51 dollars a barrel over the past month since almost doubling from a multi-year low in February. The recovery has prompted some U.S. producers to return drilling rigs to service, leading to speculations that a decline in crude output will slow.

The West Texas Intermediate for August delivery rose 0.83 dollar to settle at 47.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained 0.84 dollar to close at 48.80 dollars a barrel on the London ICE Futures Exchange. Endit