• Oil prices remain steady despite higher U.S. crude oil and fuel inventories and potential OPEC+ supply cuts extension.
• U.S. crude oil inventory rose by 1.2 million barrels last week, with gasoline inventory also increasing by 4.6 million barrels.
• Tensions in the Middle East, particularly between Israel and Hezbollah, are being closely monitored for potential impacts on oil-producing countries.
• Despite these factors, the global oil market remains steady, with the potential extension of OPEC+ supply cuts expected to support prices.

Oil prices remained steady in the early hours of Wednesday, as market participants weighed the implications of higher U.S. crude oil and fuel inventories against the likelihood of OPEC+ extending supply cuts. Brent crude futures fell marginally by 2 cents, or 0.03%, to $73.60 a barrel, while U.S. West Texas Intermediate crude futures eased by 3 cents, or 0.04%, to $69.91. This stability in oil prices came after Brent posted its most significant gain in two weeks, rising by 2.5%.

The U.S. crude oil inventory rose by 1.2 million barrels last week, according to market sources citing data from the American Petroleum Institute. The gasoline inventory also saw an increase of 4.6 million barrels, despite the week including Thanksgiving, a period when demand typically rises as families travel by car for holiday get-togethers. Official data on oil stocks from the U.S. Energy Information Administration is due on Wednesday. Analysts polled by Reuters expect a 700,000 barrel decline in crude and a 639,000 barrel increase in gasoline.

OPEC+ Likely to Extend Supply Cuts

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are likely to extend output cuts until the end of the first quarter of next year when members meet on Thursday, according to industry sources. OPEC+ has been looking to gradually phase out supply cuts through next year. This decision is expected to buoy prices, despite the increase in U.S. stockpiles.

Investors are also closely monitoring tensions in the Middle East for their potential impact on the region's oil-producing countries. Israel has warned that it would return to war with Hezbollah if their truce collapses, with attacks potentially going deeper into Lebanon and targeting the state itself. This statement followed the deadliest day since Israel and Hezbollah agreed on a ceasefire last week. In neighboring Syria, rebels advancing against government forces pushed close to the major city of Hama after their surprise capture of Aleppo last week.

Global Developments Impacting Oil Markets

In other news, the United States has urged Israel to investigate allegations that its airstrikes have killed aid workers in Gaza. The call came after the recent killing of a Save the Children staffer, 39-year-old Ahmad Faisal Isleem Al-Qadi, in an airstrike on Saturday in Khan Younis. The U.S. State Department deputy spokesperson, Vedant Patel, expressed outrage over the incident and called for more information.

Meanwhile, China's major technology stocks have been left behind in this year's global frenzy over artificial intelligence. The Nasdaq 100 has soared more than 75% since ChatGPT was introduced two years ago, compared with Hang Seng Tech Index's 16% gain. The underperformance reflects investor pessimism toward China's economic revival efforts, on top of concerns over monetization and trade bans.

In another development, Mitsubishi Corp. has suffered a loss of more than $90 million in China after uncovering suspected fraud by one of its copper traders. The loss is the latest in a string of recent cases of alleged wrongdoing to hit a major commodity trading house, highlighting the risk that individual traders who handle billions of dollars in commodities may seek to enrich themselves at the expense of their own companies.