Oil higher in volatile trade after inventories data

Oil futures are higher in volatile price action as traders sifted through weekly inventories data. The Energy Information Administration said U.S. crude stockpiles rose 1.4 million barrels in the week ended July 29. Analysts surveyed The Wall Street Journal had forecast a drop of 1.3 million barrels. The data, however, showed that gasoline inventories had dropped by 3.3 million barrels, versus forecasts for a fall of 300,000 barrels. Oil futures initially plunged in the wake of the data, but then rebounded sharply to set new session highs. September WTI crude on the New York Mercantile Exchange is up 56 cents, or 1.5%, at $40.07 a barrel. September gasoline spiked higher and is up 0.8% at $1.3219 a gallon.

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