Oil remained mostly unchanged for a second day on Wednesday as data indicating increased United States crude reserves was countered by worries that the crisis in Ukraine may hamper Russia’s oil supply and indications of an increase in Chinese crude imports.
Brent crude futures were up 11 cents to $73.42 per barrel early morning.
The more active WTI contract for January was up 18 cents at $69.42 per barrel, while the US West Texas Intermediate crude futures for December, which expire on Wednesday, were flat at $69.39 per barrel, according to Reuters.
This week, the market has remained flat due to the intensifying conflict between Ukraine and Russia, two key oil producers.
“We may expect (Brent) oil prices to stay supported above the $70 level for now, as market participants continue to monitor the geopolitical developments,” said Yeap Jun Rong, market strategist at IG.
Moscow says Ukraine launched its first attack on Russian territory on Tuesday using U.S. ATACMS missiles. Russian President, Vladimir Putin lowered the bar for a possible nuclear attack.
“This marks a renewed build up in tensions in the Russia-Ukraine war and brings back into focus the risk of supply disruptions in the oil market,” ANZ analysts said in a note to clients.
Market sources said on Tuesday that US crude oil stockpiles increased by 4.75 million barrels during the week ending November 15, citing data from the American Petroleum Institute.
That was a bigger build than the 100,000-barrel increase analysts polled by Reuters were expecting
After a period of sluggish imports, there were indications that China, the world’s top crude importer, may have increased oil purchases this month, which would have improved sentiment around oil prices.
China’s oil imports are expected to reach or nearly reach record highs by the end of November, an analyst noted.
China’s weak imports so far this year have caused oil prices to decline; Brent has dropped 20 per cent from its peak of over $92 a barrel in April.
