Oil Rebounds From Two-week Low Ahead Of Inventory Data

Oil edged up slightly on Wednesday after falling about 2 percent to a two-week low in the previous session on signs of easing geopolitical tensions.

Benchmark Brent crude futures edged up by 0.4 percent to $67.64 a barre after falling nearly 2 percent on Tuesday. WTI crude futures were up 0.3 percent at $2.47 after losing 1 percent the previous day.

The upside was capped by a stronger dollar as investors waited for the release of minutes from the Federal Reserve’s January policy meeting.

Fears of supply disruptions eased as investors weighed progress in Rusia-Ukraine as well as U.S.-Iran peace talks.

Iran said it has reached an understanding with the United States on the main “guiding principles” to resolve their dispute over Tehran’s nuclear program.

A potential deal could eventually bring more Iranian crude to global market and change supply expectations.

Russian and Ukrainian delegations have ended the first day of U.S.-brokered peace talks in Geneva, with Ukraine’s lead negotiator Rustem Umerov saying discussions were focused on “practical issues and the mechanics of possible solutions”.

The focus now shifts to the upcoming weekly inventory reports, starting with the report from the American Petroleum Institute later in the day, followed by the publication from the Energy Information Administration on Thursday.