Brent crude futures gained 17 cents, or 0.16%, to $76.60 a barrel and U.S. WTI crude added 17 cents, or 0.23%, to $73.37
Oil prices recovered in Asian trading on Wednesday on heightened Middle East tensions, but gains were capped by muted demand.
Brent crude futures gained 17 cents, or 0.16%, to $76.60 a barrel by 0615 GMT. U.S. WTI crude added 17 cents, or 0.23%, to $73.37.
The uptick in oil prices could possibly be driven by expectations of heightened supply risks due to growing Middle East tensions and a correction from the multi-month low of oil prices. The bearish demand sentiments still remain, and are expected to cap the upside on oil prices, said Vortexa’s head of Asia oil analysis Serena Huang.
Supporting the bearish demand view, Chinese trade data showed that its July daily crude oil imports declined to the lowest level since September 2022.
The broader price recovery came after prices slid earlier in the trading session, following U.S. data showing an unexpected build in crude oil and gasoline inventories.
U.S. crude oil, gasoline and distillate inventories increased last week, as per market sources citing API figures on Tuesday.
The API figures showed crude stocks rose by 176,000 barrels in the week ended August 2, the sources said, speaking on condition of anonymity.
Gasoline inventories increased by 3.313 million barrels against analysts’ expectations for a 1 million bbl draw, while distillate stocks increased by 1.217 million barrels, a bigger build than anticipated.
The U.S. EIA is due to release weekly inventory data at 1430 GMT on Wednesday.
On Monday, Brent futures plunged to their lowest since early January and WTI futures hit their lowest since February, as a global stock market rout deepened on growing concerns of a potential recession in the U.S., the world’s largest petroleum consumer.
However, both benchmarks broke a three-session declining streak on Tuesday as tensions in the Middle East stoked supply concerns.
