Oil edges up on official data of higher US crude inventories and inflation data.
A barrel of European benchmark crude, Brent, goes for USD 76.88 on Wednesday morning, up from USD 76.19 on Tuesday afternoon. US West Texas Intermediate simultaneously trades at USD 73.15, up from USD 72.41.
Oil slid late Tuesday afternoon on data showing surprising US inventory build. In what could be a sign of weakened demand, US stockpiles rose by 3.6 million barrels, according to the American Petroleum Institute, writes Reuters.
US government data on oil inventories is due on Wednesday.
Elsewhere, the market awaits US consumer price index (CPI) figures for April, also due Wednesday. New York Fed President John Williams has said that inflation remains too high and the Federal Reserve will raise interest rates again if necessary.
In Alberta, Canada’s primary oil-producing province, forest fires eased on Tuesday thanks to cooler weather. Wildfires urged oil and gas producers to shut down 3.7% of the countries overall production output, writes Reuters.