Oil was steady -- after closing at the highest since mid-April on concerns about a possible escalation of the conflict between Ukraine and Russia -- ahead of data that may show swelling US crude stockpiles.
West Texas Intermediate futures traded near $83 a barrel after advancing 1.2% on Tuesday. There's heightened focus on the risk to Russian flows from the Black Sea after President Volodymyr Zelenskiy said his country would retaliate to prevent the OPEC+ producer from "blocking our waters." The remarks followed a Ukrainian drone attack on an oil tanker over the weekend.
The industry-funded American Petroleum Institute reported US crude stockpiles rose by 4.07 million barrels last week, according to people familiar. That would be the first gain in four weeks if confirmed by government data Wednesday.
Oil has rallied since late June following pledges by OPEC+ heavyweights Saudi Arabia and Russia to cut supply, but headwinds still linger. China's economic rebound remains sluggish and the Energy Information Administration on Tuesday lowered its forecast for US consumption of products this year.
The International Energy Agency and OPEC will release reports later this week that will provide snapshots of the oil market, which is expected to tighten through the second half of the year.
WTI for September delivery was little changed at $82.86 a barrel as of 7:45 a.m. in London. Brent for October settlement was steady at $86.13 a barrel.
Source: Bloomberg
