Oil edges up after US stockpiles report helps offset worries on rising supply
Business
Brent crude oil futures rose 27 cents, or 0.4%, to $73.29 a barrel
(Reuters) - Oil prices climbed in early Asian trading hours on Wednesday, bouncing off two-month lows hit in the prior session, after an industry group reported U.S. crude stockpiles fell last week.
Brent crude oil futures rose 27 cents, or 0.4%, to $73.29 a barrel by 0134 GMT. U.S. West Texas Intermediate crude oil futures were up 25 cents, or 0.4%, to $69.18 per barrel.
U.S. crude stocks fell 640,000 barrels in the week ended February 21, market sources said on Tuesday citing American Petroleum Institute data. Official U.S. stockpiles data is due later on Wednesday.
Analysts polled by Reuters estimated a 2.6-million-barrel increase in U.S. crude stocks last week.
The report helped offset some concerns on rising oil supply around the globe. That, and dour economic reports by the U.S. and Germany, pulled oil prices more than 2% lower on Tuesday.
Brent crude closed at its lowest since December 23 on Tuesday, while WTI recorded its lowest settlement since December 10.
U.S. data showed consumer confidence in February deteriorated at its sharpest pace in 3-1/2 years, with 12-month inflation expectations surging. Meanwhile, the German economy shrank in the last three months of 2024 compared to the prior quarter.
Oil prices have also been buffeted by concerns that U.S. President Donald Trump's decisions about tariffs against China, and other trading partners, could add to pressure on the country's economy.
That has eased worries on tighter near-term oil supply despite fresh U.S. sanctions against Iran, ANZ Bank analysts wrote in a note to clients.
Even though U.S. policy measures could drive an up to 1 million barrel-per-day reduction in Iranian crude exports, any loss in supply from the Middle Eastern nation is countered by OPEC+ members hoping to bring more supply to the market in the months ahead, Commodity Context analyst Rory Johnston said.
U.S. President Donald Trump has said he wants Ukraine to supply the U.S. with rare earth minerals as a form of payment for financially supporting the country's war efforts against Russia.
Meanwhile, the U.S. and Ukraine also agreed terms of a draft minerals deal central to Trump's efforts to rapidly end the war in Ukraine, sources familiar with the matter told Reuters on Tuesday.
An end to the war in Ukraine could pave the way for additional Russian oil supply to hit the market.
