(Investing)– Oil prices were steady in European trading on Thursday after touching an almost one-week high in the prior session, as traders weighed an increase in U.S. crude oil inventories.
Brent oil futures rose 0.6% to $76.51 per barrel as of 09:10 ET (14:10 GMT), while West Texas Intermediate crude futures advanced by 0.6% to $72.58 a barrel.
The American Petroleum Institute (API) reported a 3.34 million-barrel increase in U.S. crude oil inventories for the week ending February 14, surpassing analysts’ expectations of a 2.2 million barrel rise.
Gasoline inventories experienced a build of 2.83 million barrels, while distillate stocks, including diesel and heating oil, decreased by 2.69 million barrels during the same period.
Market participants will likely be closely monitoring official data from the U.S. Energy Information Administration (EIA) on Thursday report for further insights. Analysts have estimated that U.S. stockpiles in the week to February 14 grew by around 2.2 million barrels of crude.
Prices received support earlier this week after Ukrainian drone strikes targeted a key Russian crude-pumping station, disrupting supply from Kazakhstan. The attack reignited fears of further supply disruptions in a market already grappling with tight inventories.
In the U.S., cold weather has also put pressure on supplies. The North Dakota Pipeline Authority reported that the state’s production is expected to drop by 150,000 barrels per day.
Meanwhile, media reports have also suggested that the OPEC producer group and its allies — also known as OPEC+ — may delay increasing supply to the market.
“Concerns over the fragility of the market leaves OPEC+ reluctant to increase supply. A delay could wipe out the surplus we expect for the market this year, which would leave prices better supported,” ING analysts said in a recent note.
However, gains in recent days have been limited by negotiations earlier this week between the U.S. and Russia over a deal to end the war in Ukraine. Investors have considered whether a peace agreement would lead to an easing of sanctions on Russia — and a subsequent return of supplies from the major oil-producing country.
