Oil prices were volatile Wednesday as market optimism over production cuts by Saudi Arabia and Russia clashed with concerns over a potential economic downturn denting demand.
Brent crude edged up 0.1% to $79.45 a barrel while WTI similarly rose 0.1% to $74.88 a barrel. Earlier in the session, however, both benchmarks fell 0.1%.
Prices were higher earlier in the week after Saudi Arabia announced it would extend its 1 million barrel per day production cut in August and Russia said it would cut exports by 500,000 barrels per day.
However, US crude inventories jumped by around 3 million barrels last week, according to sources. If confirmed, it would be the first crude stock build in four weeks.
Analysts say multiple supply cut announcements only have a short-term positive effect on prices and do not change the overall bearish trend. Chances of a bearish trend are higher given slowing economic growth and continued hawkish monetary policy, which could dent demand. The short-term technical outlook is also viewed as bearish.
