Oil edged lower as traders digested differing views on the supply and demand outlook, while an industry report pointed to an expansion in US stockpiles.
Global benchmark Brent traded near $82 a barrel, erasing an earlier gain. The International Energy Agency said global oil markets won’t be as tight as expected this quarter, with production growth in the US and Brazil beating forecasts. That came after a more upbeat assessment from OPEC that highlighted robust growth trends and healthy fundamentals.
Oil fell to a three-month low last week after shedding all of the war-risk premium from the conflict between Israel and Hamas. A soft US inflation print on Tuesday spurred bets the Federal Reserve will start cutting interest rates by mid-2024, aiding the longer-term outlook, but prices have struggled for direction as concerns linger about rising supply and faltering consumption.
The industry-funded American Petroleum Institute reported US crude inventories rose by 1.3 million barrels last week, while stockpiles at the hub in Cushing, Oklahoma increased by 1.1 million barrels, according to people familiar with the data. Figures from AlphaBBL also signaled expansion at Cushing. Two weeks of official data is due later Wednesday.
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