Oil held the biggest loss in three weeks on signs of rising US crude production, which added to a robust supply outlook and overshadowed continuing tensions in the Middle East.
West Texas Intermediate was little changed near $76 a barrel after losing 2.5% in the previous session, the biggest decline since early January. Brent also fell. US oil output rose to 13.3 million barrels a day in November, surpassing a previous record in September, according to data on Wednesday.
The market continues to watch for the US response to a deadly attack in Jordan over the weekend that killed American troops. President Joe Biden said Iran was responsible for providing the weaponry used in the strike, but Tehran has denied involvement and warned of retaliation.
Oil still capped its first monthly gain in four months in January following an escalation of attacks on commercial shipping in the Red Sea by Yemen-based Houthi rebels. However, concerns around demand in key consumers and strong supply from non-OPEC producers has kept a lid on price gains.
Weekly US data also showed oil output back at 13 million barrels a day. The nation’s crude inventories rose for the first time in three weeks too, according to figures from the Energy Information Administration.
