Oil held a three-day rally as the US updated plans to replenish strategic reserves and Canadian supplies were disrupted by wildfires.
West Texas Intermediate was steady below $74 a barrel after jumping 7.5% over the previous three sessions. The White House said Tuesday it would begin purchasing crude to replenish the emergency reserves after maintenance work later this year. In Canada, meanwhile, fires have curtailed energy production by the equivalent of 500,000 barrels a day, Rystad Energy said.
Crude has lost about 8% this year as worries over Federal Reserve tightening and a potential US recession outweighed a solid physical market and supply cuts by the Organization of Petroleum Exporting Countries and its allies. Still, Russian exports have continued to show little sign of ebbing despite Moscow saying its output curbs had almost hit a pledged goal of 500,000 barrels a day.
An industry-funded report showed a mixed picture in the US ahead of official data later Wednesday. Nationwide oil stockpiles rose 3.6 million barrels last week, but inventories fell at the key Cushing, Oklahoma hub, the American Petroleum Institute reported, according to people familiar with the figures.
US inflation data is due later Wednesday, and will be closely watched for a further read on the likely Fed rate path. There are expectations the central bank may pause rate hikes.
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