Oil prices rose slightly in Asian trade on Wednesday as investors sought more cues on U.S. production and inventories from official data due later in the day, while focus remained on ongoing negotiations over a ceasefire in the Israel-Hamas war.
Forecasts for a potential drop in U.S. production, from record highs, spurred some strength in oil prices this week, which were otherwise reeling from steep losses amid speculation over an end to disruptions in the Middle East.
A softer dollar also afforded some relief to oil prices, as the greenback retreated after racing to near three-month highs earlier in the week. Strength in the dollar was driven chiefly by expectations of higher-for-longer U.S. interest rates, and had pressured crude prices in recent sessions.
Brent oil futures expiring in April rose 0.3% to $78.85 a barrel, while West Texas Intermediate crude futures rose 0.4% to $73.63 a barrel by 20:07 ET (01:07 GMT). Both contracts had slumped over 7% each last week.
Gaza ceasefire in focus as Blinken visits Israel
A ceasefire in the Middle East has been a key point of focus for oil markets in recent sessions, especially as media reports indicated that there was some dialogue between Israeli and Hamas leaders over a deal.