Oil prices steadied after their biggest gain in more than a week, as traders tracked developments in the Middle East and the impact of Chinese stimulus measures on demand.
Brent crude traded above $75 a barrel after rising 1.7% on Tuesday, with WTI nearing $72. Iranian President Masoud Pezeshkian said Israeli attacks on Lebanon could not go unanswered, while also urging Western nations to return to the nuclear deal and lift sanctions on his country.
The massive dose of adrenaline China has unleashed to support its economy, the stimulus package unveiled yesterday, has boosted stock markets around the world, although it is not yet clear whether it will translate into higher energy demand in the world's largest oil importer.
Crude oil is still slightly down this year, with a gloomy outlook for Asia’s largest economy and the prospect of increased supply from OPEC+ weighing on prices. The producer group on Tuesday reiterated its view that global oil demand will continue to grow until mid-century.
In the United States, the American Petroleum Institute reported that commercial crude oil inventories fell by 4.34 million barrels last week, according to people familiar with the data. That would leave inventories at their lowest level since April 2022 if confirmed by official data later on Wednesday.
Meanwhile, Tropical Storm Helene strengthened as it moved toward the Gulf of Mexico, forcing the evacuation of some oil and natural gas platforms.
