Oil prices rose in early trade on Wednesday, as markets focused on supply tightness heading into winter and a “soft landing” for the US economy.

Brent crude futures rose 33 cents, or 0.4%, to $94.29 a barrel.

US West Texas Intermediate crude futures climbed 31 cents, or 0.3%, to $90.70.

Industry data released on Tuesday showed US crude oil stockpiles rose last week by about 1.6 million barrels, against analysts’ expectations for a drop of about 300,000 barrels.

However, markets continued to worry about US crude stockpiles at the key Cushing, Oklahoma, storage hub falling below minimum operating levels.

US government data on oil inventories is expected later today.

Meanwhile, a “soft landing” for the US economy is more likely than not, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday, but there is also a 40% chance that the Fed will need to raise interest rates “meaningfully” to beat inflation.

Higher interest rates increase borrowing costs, which could slow economic growth an
d reduce oil demand.

Source: Qatar News Agency