Oil Steady as Industry Report Points to Rising US Stockpiles

Oil was steady as an industry report signaled a build in US crude inventories ahead of government figures, Bloomberg reported.
Brent traded near $73 a barrel after closing slightly higher on Tuesday, and West Texas Intermediate was above $69. The American Petroleum Institute reported crude stockpiles expanded by 4.8 million barrels last week while fuel supplies fell, according to a document seen by Bloomberg.
The Energy Information Administration is scheduled to release its data on inventories, refining and fuel demand later on Wednesday.
Oil has swung between gains and losses since mid-October, influenced by a range of factors including concerns around China’s demand outlook, plentiful global supply, Middle East hostilities and a strong dollar. Still, implied volatility for Brent has trended lower since the middle of last month.
“The crude oil market lacks a strong catalyst at the moment,” said Gao Jian, an analyst at Qisheng Futures Co. The market is assessing the supply outlook and geopolitical developments for a “trend-setting trade direction,” he said.
The US has stepped up efforts to reach a cease-fire between Lebanese militant group Hezbollah and Israel before Joe Biden’s term ends as president, although Russia’s war on Ukraine is escalating after months of attrition. Iran has also agreed to stop producing uranium enriched near bomb-grade.