Oil prices increased on Wednesday, recovering some of the significant losses from the previous session, although the rise was tempered by indications of a substantial increase in U.S. inventories.
On Tuesday, oil prices dropped over 4 percent following reports suggesting a potential easing of tensions in the Middle East conflict.
Diminishing optimism regarding new stimulus measures in China, the largest oil importer, also contributed to the decline, as authorities opted against implementing stronger fiscal initiatives to support slowing economic growth.
Brent crude futures for December delivery climbed 0.6 percent to $77.63 per barrel, while West Texas Intermediate crude futures also rose 0.6 percent to $73.40 per barrel by 21:14 ET (01:14 GMT).
Read more: Oil prices retreat amidst ongoing concerns over Middle East conflict, hurricane impact
Inventory data insights
Data from the American Petroleum Institute indicated a significant increase in U.S. oil inventories, which swelled by 10.9 million barrels over the past week, far exceeding the anticipated rise of 1.95 million barrels.
Demand concerns
This figure often foreshadows a similar trend in the official inventory data, which is expected later on Wednesday. It has raised concerns about a potential cooling in U.S. fuel demand, particularly as the mid-South region deals with a series of destructive hurricanes.
Hurricane Milton watch
Traders are closely monitoring Hurricane Milton, one of the most powerful storms in recent history, as it approaches Florida this week. However, the category-5 hurricane is predicted to largely avoid major oil and gas operations in the Gulf of Mexico.
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