Oil prices traded mixed on Wednesday after falling more than 4 percent the previous day to their lowest since late July on demand concerns, signs of higher supply and easing Middle East tensions.
Benchmark Brent crude futures edged up 0.2 percent to $81.75 a barrel, while WTI crude futures were marginally lower at $77.32.
The dollar extended gains for a third day on hawkish Fed comments and industry data showed a sharp build in U.S. crude stocks, keeping oil prices under pressure.
The dollar continued its rebound following cautious comments from Fed officials on the future rate path and ahead of Chair Jerome Powell’s speech due later in the day.
Fed Governor Christopher Waller said in a speech on Tuesday that Q3 U.S. GDP growth was a “blowout” performance that warrants a very close eye when thinking about policy going forward.
Fellow Governor Michelle Bowman said that the economy is gaining speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts, citing sticky inflation and resilience in the U.S. economy.
Meanwhile, new data from the American Petroleum institute revealed a 11.9-million-barrel jump in crude inventories for the week ending 3 November. Refined products showed more modest declines.