Oil prices were steady for a second day on Wednesday as escalating hostilities in the Ukraine war could disrupt Russia’s oil supplies. Signs of rising Chinese crude imports offset data showing rising U.S. crude inventories.
Brent crude futures fell 5 cents to $73.26 a barrel by 0541 GMT. WTI crude futures were steady at $69.39 a barrel.
This week, the escalating war between Russia and Ukraine has created a floor under the market. Market participants continue to monitor geopolitical developments, and Brent crude prices are expected to remain above the $70 level for now.
Moscow said on Tuesday that Ukraine used U.S. ATACMS missiles to strike Russian territory for the first time. Russian President Vladimir Putin has lowered the bar for a possible nuclear attack.
That has renewed tensions over the Russia-Ukraine war and raised the risk of supply disruptions in the oil market.
On the demand side, market sources said on Tuesday, citing figures from the American Petroleum Institute (API), that U.S. crude inventories rose by 4.75 million barrels in the week ending Nov. 15.
That was a bigger increase than the 100,000 barrels analysts had expected. But gasoline inventories fell by 2.48 million barrels, compared with analysts’ expectations of a 900,000 barrel increase. Distillate inventories also fell, falling by 688,000 barrels last week, it said.
Official US government data is due later on Wednesday.
Supporting oil price sentiment, there are signs that China, the world’s largest importer of crude, may have increased its oil purchases this month after a period of weak imports.
China’s weak imports so far this year have dragged down oil prices, with Brent falling 20% from its April peak above $92 a barrel.
But data showed China’s crude imports were on track to finish November at or near record levels.
