(Bloomberg) — Oil edged higher after dropping by the most in more than a month as the impact of US sanctions against Russian flows continued to reverberate, and an industry report pointed to lower US stockpiles.
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West Texas Intermediate rose toward $78 a barrel, after slumping by 1.7% on Tuesday on expectations for a ceasefire between Israel and Hamas, while Brent ended below $80. The American Petroleum Institute said commercial crude inventories fell by 2.6 million barrels last week, according to a document seen by Bloomberg. That would be an eighth weekly draw if confirmed by government data later Wednesday.
Crude has seen a strong start to the year, with the latest US sanctions adding to gains driven by falling inventories and colder weather. Buyers of Russian oil are increasingly turning to other OPEC+ suppliers, as markets including India said they would bar sanctioned tankers. In China, state oil companies and large private refiners have been snapping up cargoes from the Middle East and elsewhere in preparation for potential disruption.
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