Industry figures show decline in U.S. crude stocks

Oil futures rose modestly early Wednesday, attempting to bounce after back-to-back losses as traders awaited an expected rate cut by the Federal Reserve and official data on crude and product inventories.

Price moves

-- West Texas Intermediate crude for January delivery CL.1 CLF25 rose 50 cents, or 0.7%, to $70.58 a barrel on the New York Mercantile Exchange. The more actively traded February contract CL00 CLG25 was up 50 cents at $70.15 a barrel.

-- February Brent crude BRN00 BRNG25, the global benchmark, gained 43 cents, or 0.6%, to $73.62 a barrel on ICE Futures Europe.

Market drivers

Oil futures were attempting to bounce after back-to-back losses that traders attributed in part to disappointing data from China, the world's largest crude importer, and reports a cease-fire in Gaza may be near.

The Federal Reserve is expected to cut its key rate by another 25 basis points, or a quarter of a percentage point, at the conclusion of its two-day policy meeting at 2 p.m. ET Wednesday. The central bank will also provide updated forecasts for interest rates and economic activity.

MarketWatch Live: Fed appears set to cut rate

Meanwhile, the American Petroleum Institute late Tuesday reported that U.S. crude inventories fell 4.7 million barrels last week, according to a source citing the data, with gasoline stocks rising 2.4 million barrels and distillates, which include diesel fuel and heating oil, up 700,000 barrels.

Official data from the Energy Information Administration due Wednesday morning is expected to show that crude stocks fell 1.8 million barrels last week, according to a survey of analysts by S&P Global Commodity Insight. Gasoline stocks are expected to rise 2.1 million barrels, with distillates seen higher by 600,000 barrels.

-William Watts

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.