Oil rebounded Wednesday from a two-day drop as the dollar fell and the petroleum industry reported a hefty draw in U.S. gasoline supplies last week.
Benchmark crude for May delivery rose 32 cents to $106.57 per barrel on the New York Mercantile Exchange. The contract fell 6 percent on Monday and Tuesday.
The American Petroleum Institute said gasoline supplies dropped last week by 4.6 million barrels — more than three times what analysts had expected. A decline in gasoline supplies could boost demand for crude oil, which is refined to make gasoline.
The government is expected to release its weekly report on oil and gasoline supplies on Wednesday.
Meanwhile, gasoline pump prices continued to rise. The national average added nearly 2 cents on Wednesday, to hit $3.808 per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular costs 25 cents more than a month ago and is 95 cents higher than last year.
In other Nymex trading for May contracts, heating oil added a penny at $3.1808 per gallon and gasoline futures gained 3 cents at $3.1922 a gallon. Natural gas futures added 7.5 cents to $4.171 per 1,000 cubic feet.
In London, Brent crude rose 82 cents to $121.25 per barrel on the ICE Futures exchange.