Oil maintained its gains
Oil maintains gains on stock data and focus on Iran sanctions.
Oil maintained its gains after a report showed U.S. crude oil inventories dwindled and investors monitored progress on new sanctions on Iran.
Brent was steady above $88 a barrel after rising 1.6 percent on Tuesday, while U.S. crude was near $83. The American Petroleum Institute (API) reported that nationwide crude oil inventories fell by 3.2 million barrels last week, according to sources familiar with the data. If confirmed by official figures later Wednesday, it would be the first decline in five weeks.
API also cited a decline in overall gasoline levels, while oil inventories at the Cushing, Oklahoma hub were seen shrinking.
Meanwhile, the US Senate has taken tougher action against Iran in response to the attack on Israel earlier this month, and President Joe Biden has said he will sign the legislation into law. The move is not expected to have a significant impact on the market as some Asian refiners prepare for increased scrutiny.
Crude oil has climbed this year due to the impact of OPEC+’s supply cuts as well as geopolitical risks in the Middle East and Russia. Investors are also evaluating the outlook for U.S. monetary policy; Slowing growth in business activity in the US is interpreted as bullish as it fuels expectations of lower interest rates. Data on the Fed’s preferred inflation gauge will be released later this week.