Oil prices rose after an industry report signaled a big drop in U.S. crude stockpiles, while the market weighed the prospect of a Russia-Ukraine ceasefire in the Black Sea.

West Texas Intermediate crude rose above $69 a barrel after closing slightly lower on Tuesday. Brent crude settled near $73. Inventories fell by 4.6 million barrels last week, according to the American Petroleum Institute, which would be the biggest drop since November if confirmed by official data due Wednesday.

Meanwhile, the U.S. said Russia and Ukraine had agreed to a ceasefire "to ensure safe navigation" in the Black Sea, even as the Kremlin said its involvement would depend on preconditions including sanctions relief. Some of the world's leading energy traders have said they are likely to return to Russia if the sanctions end. (Newsmaker23)

Source: Bloomberg