(Bloomberg) -- Oil rose, shrugging off another gain in US crude stockpiles, as the market weighed an escalation of the Russia-Ukraine war.
Brent traded above $73 a barrel after closing 0.7% lower on Wednesday, while West Texas Intermediate was near $69. Ukrainian forces expanded the use of Western-provided long-range weapons on Russian military targets following a revamped nuclear doctrine from the Kremlin.
In the US, meanwhile, crude inventories expanded by 545,000 barrels for a third weekly increase, according to government data. The gain was significantly smaller than figures flagged by an industry report on Tuesday.
Oil has swung between gains and losses since mid-October, buffeted by a range of factors including concerns over Chinese demand and a stronger dollar. The market is facing a supply glut next year and investors are watching for a decision from OPEC+ on plans to start reviving idled supply.
“We expect oil prices to test new lows next year as geopolitical risk subsides and bearish fundamental factors take great weight,” Macquarie Group analysts including Vikas Dwivedi wrote in a note dated Nov. 20. Futures are currently “range-bound with limited catalysts,” they added.
To get Bloomberg’s Energy Daily newsletter into your inbox, click here.
©2024 Bloomberg L.P.