Oil prices remained largely unchanged in early Asian trading on Wednesday as markets assessed rising U.S. crude and fuel inventories alongside the potential for OPEC+ to extend supply cuts.
By 0145 GMT, Brent crude futures edged down by 2 cents, or 0.03%, to $73.60 a barrel, while U.S. West Texas Intermediate crude futures slipped 3 cents, or 0.04%, to $69.91.
On Tuesday, Brent posted its largest gain in two weeks, climbing 2.5%.
According to market sources citing data from the American Petroleum Institute (API), U.S. crude oil inventories increased by 1.2 million barrels last week. Gasoline stocks also rose by 4.6 million barrels, despite the Thanksgiving holiday, when travel demand typically boosts consumption.
Official inventory data from the U.S. Energy Information Administration (EIA) is scheduled for release at 10:30 a.m. ET (1530 GMT) on Wednesday. Analysts surveyed by Reuters anticipate a 700,000-barrel decline in crude stockpiles but a 639,000-barrel increase in gasoline inventories.
Supporting prices, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to extend output cuts through the first quarter of 2024 when they meet on Thursday, according to industry sources. OPEC+ plans to gradually phase out supply reductions over the course of next year.
Additionally, investors kept an eye on tensions in the Middle East, monitoring their potential impact on oil-producing nations in the region.
On Tuesday, Israel warned of a return to war with Hezbollah if the current truce collapses, stating that future strikes would target deeper into Lebanon, including state infrastructure. The warning followed the deadliest day since the ceasefire agreement between Israel and Hezbollah last week.In neighboring Syria, rebels advanced against government forces on Tuesday, nearing the major city of Hama, according to rebel sources and a war monitor. This followed their unexpected capture of Aleppo last week.
