Oil prices rose in early trade on Wednesday, on estimates of a decline in US crude and gasoline inventories as the market monitors the possibility of a wider war in the Middle East that could limit global oil supplies.
Price action
Brent crude futures were up 30 cents at $80.99 a barrel by 0009 GMT, while US West Texas Intermediate (WTI) crude futures were up 38 cents at $78.73.
US crude and gasoline stocks fell last week, while distillate inventories rose, data from the American Petroleum Institute showed on Tuesday.
The API figures showed crude inventories fell by 5.21 million barrels in the week to Aug. 9. It also showed gasoline stocks fell by 3.69 million barrels and distillate inventories rose by 612,000 barrels.
The lower inventories could signal stronger demand in the United States, the world's biggest oil consumer.
Official government data from the Energy Information Administration is due later on Wednesday.
Markets are also awaiting clues on Iran’s next steps after it vowed a harsh response to the killing of Hamas leader Ismail Haniyeh late last month in Tehran, which it accused Israel of carrying out the assassination. Israel has neither confirmed nor denied involvement.
The U.S. Navy has also deployed warships and a submarine to the Middle East to bolster Israeli defenses.
Analysts have warned that a widening conflict in the region could affect crude supplies from Iran and neighboring producers, depressing inventories and supporting prices.
Meanwhile, the International Energy Agency left its forecast for global oil demand growth in 2024 unchanged on Tuesday but trimmed its estimate for 2025, citing the impact of a weak Chinese economy on consumption, which has limited further price gains.
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