Oil held a two-day decline after an industry report pointed to a gain in US crude stockpiles, although simmering tensions in the Middle East and ongoing OPEC+ curbs are expected to cap losses.
West Texas Intermediate was steady above USD85 a barrel after closing 1.4% lower on Tuesday. Brent traded near $89. The American Petroleum Institute reported crude inventories rose by 3.03 million barrels last week, according to Oilprice.com. Official government figures are due later Wednesday.
Oil is still up 19% this year as OPEC+ cuts supply and geopolitical tensions across the Middle East present bullish tailwinds. Investors will get a broader snapshot of the market including an outlook for demand when OPEC and the International Energy Agency release monthly reports this week.
The API also reported a modest gain in Cushing inventories, but a decline in gasoline supplies. If the Energy Information Administration confirms the increase in overall crude stockpiles, it will be a third weekly expansion. – Bloomberg
