Oil steady on Wednesday

Oil opened steady on Wednesday, following a report of a small increase in US crude inventories. Brent traded above $85 a barrel, and West Texas Intermediate (WTI) was near $81.

The American Petroleum Institute reported a rise of about 900,000 barrels in crude stockpiles last week, though holdings at the Cushing storage hub decreased.

The Energy Information Administration will release its data on inventories, refining, and fuel demand later Wednesday.

Oil is set for a monthly gain, with analysts becoming more optimistic about the market’s outlook next quarter due to tightening conditions and geopolitical tensions from Yemen to Russia. Traders will also watch inflation and other economic data for insights on interest rates.

Notably, prompt time spreads for Brent and WTI have widened in a bullish backwardation structure this month, and money managers have increased their bets on various products, including ICE gasoil, Europe’s diesel benchmark.

Attribution: Bloomberg.