an earlier version of this article cited incorrect api inventory figures the article has been corrected oil futures rose wednesday morning buoyed by continued optimism over the supply outlook oil stumbled early in tuesdays session losing ground after china trade data showed a substantial slowdown in crude consumption in july but futures bounced back to close higher after saudi arabias cabinet affirmed opec production measures analysts said tighter supply driven in particular by voluntary cuts by saudi arabia and russia has been credited with lifting crude over the past six weeks with brent and wti ending tuesday near 2023 highs set in april there is no doubt that there is plenty of momentum here and traders are really ignoring all the bad news that is embedded in the chinese data which many analysts are trying to drum as loud as they can naeem aslam chief investment officer at zaye capital markets said in a note oil traders are feeling highly comfortable with their approach when it comes to trading oil prices and the clear trend seems to be skewed to the upside he wrote the american petroleum institute an industry trade group said late tuesday that us crude inventories rose by 41 million barrels last week according to a source citing the data while gasoline and distillate inventories fell the energy information administration will release official inventory data wednesday morning analysts surveyed by sp global commodity insights on average forecast a 930000 barrel drop in crude inventories last week gasoline stocks were forecast down 11 million barrels with distillates unchanged the eia last week reported that crude inventories dropped by more than 17 million barrels a record in the week ended july 28 investors on wednesday were also weighing chinese inflation data chinas consumer prices fell for the first time in more than two years in july while the countrys factorygate price index declined at a slower rate official data showed wednesday chinas consumerprice index dropped 03 from a year earlier in july after remaining flat in june the national bureau of statistics said the reading marked the first decline since february 2021 when cpi fell 02 on year and compared with the 04 fall expected by economists surveyed by the wall street journal 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