Oil rose ahead of key US inflation data and a monthly report from OPEC that will provide a snapshot on the market.
Brent traded near $73 a barrel after closing marginally higher on Tuesday, and West Texas Intermediate was near $69. The consumer price index figures for November are due later Wednesday and will provide clues on the path forward for monetary policy from the Federal Reserve.
The Biden administration, meanwhile, is considering new sanctions on Russia’s oil trade, a move that could tighten the market and drive up prices. Details of the possible measures were still being worked out, people familiar with the matter said.
Crude has traded in a narrow range since mid-October, buffeted by a series of bullish and bearish factors including Middle East tensions and expectations for a global glut. The US, however, has reversed its prediction for a surplus and is now forecasting a small deficit in 2025.
The Organization of the Petroleum Exporting Countries will issue its report on supply and demand later Wednesday, which will be followed Thursday by a monthly release from the International Energy Agency.
China, meanwhile, is set to start its two-day annual work meeting on Wednesday to map out policies for next year, where they will likely discuss setting a growth goal for 2025. Specific figures, however, will only be announced in March during a meeting of the legislature.
