Oil held steady as an industry report signaled a large decline in US crude stockpiles, while the market weighed the prospect of a Russia-Ukraine ceasefire in the Black Sea.
Brent traded above $73 a barrel after closing little changed on Tuesday, while West Texas Intermediate was near $69. US inventories fell by 4.6 million barrels last week, according to the American Petroleum Institute, which would be the biggest draw since November if confirmed by official data on Wednesday.
The US, meanwhile, said Russia and Ukraine had agreed to a truce “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 top energy traders said they would likely return to Russia if penalties end.
“Any scenario where we see a lifting in sanctions shouldn't lead to a significant increase in oil supply, given that Russia has been successful in diverting oil flows over the last several years,” said Warren Patterson, the head of commodities strategy for ING Groep NV in Singapore.
Oil is still down more than 10% since this year's peak in mid-January as tariffs from the Trump administration and retaliatory measures from targeted nations inject volatility into global markets. More levies are coming next week, including a duty on buyers of Venezuelan crude and gas.
Traders have been snapping up bullish oil options to hedge against the risk that US sanctions will cause prices to spike. President Donald Trump has also vowed “maximum pressure” against Iran to curb its crude exports.
Prices:
Brent for May settlement was steady at $73.15 at 1:01 p.m. in Singapore.
WTI for May delivery was 0.2% higher at $69.13 a barrel.
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