Investing.com– Oil prices steadied in Asian trade on Wednesday as traders watched for any worsening in the Russia-Ukraine conflict, although signs of a bumper build in U.S. stockpiles weighed on prices.
Oil prices marked some gains this week on the prospect of supply disruptions from an escalation in the Russia-Ukraine war, especially after Moscow raised the prospect of nuclear retaliation for Ukrainian strikes.
While an outage at Norway’s Sverdrup field had also provided some support, production resumed on Tuesday.
expiring in January steadied at $73.31 a barrel, while steadied at $69.22 a barrel by 20:34 ET (01:34 GMT).
Russia-Ukraine tensions in focus
Oil markets were watching for supply disruptions caused by any potential escalation in the Russia-Ukraine conflict, after the U.S. reportedly authorized the use of long-range missiles by Kyiv.
Moscow responded to the move by lowering the threshold for a nuclear response, putting markets on edge over a worsening in the conflict.
Ukraine has also consistently targeted Russia’s oil infrastructure, although this has so far caused few disruptions in supply.
Still, fears of a worsening conflict were soothed by Russian Foreign Minister stating that the country will do all it can to avoid nuclear war.
US oil inventories see bumper build- API
Oil markets were also rattled by industry data showing U.S. oil inventories grew much more than expected in the week to November 15.
Data from the showed oil inventories grew by 4.75 million barrels last week, much more than expectations for a 0.8 mb build.
The reading usually heralds a similar trend from , which is due later on Wednesday.
U.S. oil inventories have risen more than expected for the past two weeks, keeping traders on edge over increased supply in the world’s biggest oil producer.
This trend has tied into fears of an oil supply glut going into 2025, especially as demand among major oil importers weakens.