Investing.com — Oil prices were little moved in Asian trade on Wednesday as signs of a possible rise in U.S. inventories and expectations for key inflation data kept traders from making big bets. .
The market was also keeping an eye on whether there was any progress in ceasefire negotiations between Israel and Hamas, but the latest negotiations appear to have made little progress.
Discussions over a possible ceasefire in the Middle East had pushed oil prices down from five-month highs earlier this week. However, Iran's threat of military action against Israel and little progress in ceasefire negotiations also limited oil losses.
Prices for June maturities were flat at $89.49 per barrel, but rose 0.1% to $84.54 per barrel by 20:24 ET (00:24 GMT).
US inventory builds API bigger than expected
Data late Tuesday showed inventories rose by a bigger-than-expected 3 million barrels in the week to April 5.
The findings suggest that supplies in the world's biggest fuel consumer may not be as tight as the market expects, especially amid record production levels.
However, the continued decline in gasoline inventories indicates that fuel demand remains strong.
API data typically heralds similar readings from expected later Wednesday.
The U.S. Energy Information Administration has raised its forecast for U.S. oil production this year, a trend that could herald an easing of supply tightness.
However, the EIA also forecast average prices of $88.55 per barrel in 2024, up from its previous forecast of $87 per barrel.
CPI data looms, interest rate outlook uncertain
The main focus for the oil market was the US inflation data, which will be released later in the day. The outlook is widely expected to factor in the outlook for U.S. interest rates and is also expected to provide the market with further clues as to its next move.
Wednesday's Consumer Price Index (CPI) report is expected to show that inflation rose slightly in March, given the Fed's further push to keep interest rates steady for an extended period of time. This is a trend that bodes badly for the oil market.
The CPI report was released after last week's explosive news coverage. Several Fed officials also warned in recent meetings that persistently high inflation would prevent the central bank from cutting rates sooner.
High interest rates and inflation are expected to weigh on economic activity and reduce oil demand.