Oil gains on Middle East tensions, stock data in focus

Oil prices rose in early Asian trade on Wednesday on Middle East tensions and a weaker dollar, while investors focused on inventory data after a two week delay in reporting.

Brent futures rose 8 cents to $82.55 a barrel by 0013 GMT, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to $78.28.

The Israeli military said its forces were carrying out an operation on Wednesday against Hamas within Gaza’s biggest hospital, Al Shifa.

On Tuesday U.S. President Joe Biden said he was holding daily discussions to secure the release of hostages held by the Hamas militant group and believes it will happen.

The U.S. Energy Information Administration (EIA) will release its first oil inventory report in two weeks on Wednesday. EIA did not release a storage report last week due to a systems upgrade.

For the week ended Nov. 10, analysts forecast energy firms added about 1.8 million barrels of crude into U.S. stockpiles, according to a Reuters poll, in line with from the American Petroleum Institute out Tuesday.

On Tuesday, the International Energy Agency (IEA) boosted its demand growth forecasts, although its 2024 outlook remains much lower than that of producer group OPEC.

Expectations that the U.S. Federal Reserve could cut interest rates next spring sent the U.S. dollar down to a two-and-a-half-month low against a basket of other currencies. A weaker dollar can boost oil demand by making crude cheaper for buyers using other currencies.

READ: Japan’s economy contracted in Q3 as demand waned

Asian data releases on Wednesday include third quarter Japanese GDP and Chinese retail sales, industrial output, investment and unemployment figures for October, while U.S. and Chinese Presidents Joe Biden and Xi Jinping meet at the Asia Pacific Economic Cooperation forum in San Francisco.