Oil prices edged higher on Wednesday as the intensifying Ukraine conflict lent support to the market. However, the rise was tempered by reports of growing U.S. crude inventories.
By 2:30 pm AEDT (3:30 am GMT), Brent crude futures added US$0.05, or 0.1%, to $73.36 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $0.11 or 0.2% to $69.50 per barrel.
Preliminary data from the American Petroleum Institute (API) indicated U.S. crude oil inventories grew by 4.75 million barrels for the week ending 15 November, greater than 800,000 barrels expected.
Meanwhile, the escalating conflict in Ukraine, a significant geopolitical risk for global oil markets, has contributed to upward pressure on prices.
On Tuesday, Ukraine launched U.S.-supplied ATACMS missiles into Russian territory for the first time, prompting Moscow to warn of a reduced threshold for nuclear weapon deployment.