Crude oil futures scripted a smart rebound during late morning trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity after an industry report showed a big drop in US storage levels last week, easing concerns over a global supply glut.
The industry-funded American Petroleum Institute (API) said that US crude oil inventories fell by 3.7 million barrels last week while stockpiles at Cushing, the biggest US oil storage hub, declined nearly 500,000 barrels last week.
The EIA will release separate inventory data later in the day.
Meanwhile, fears over near-term supply aggravated after Colonial Pipeline hinted at a possible leak causing it to close down part of its operation including a line having a capacity of delivering 850,000 barrels of gasoline and distillates from North Carolina to its New Jersey hub.
At the MCX, Crude oil futures, for the October 2015 contract, is trading at Rs 3,072 per barrel, up by 1.35 per cent, after opening at Rs 3,055, against the previous close price of Rs 3,031. It touched an intraday high of Rs 3,079. (At 11:39 AM).