Oil prices moved little in Asian trade on Wednesday, as signals of a probable boost in US inventories and the impending release of important inflation data prevented traders from placing major wagers.

Markets were also waiting for any development in Israel-Hamas cease-fire talks, however the most recent round of discussions appeared to be making little headway.

Oil prices fell from five-month highs earlier this week due to talk of a possible cease-fire in the Middle East. However, losses in oil were restricted by the lack of movement in cease-fire talks, as Iran threatened military action against Israel.

Brent oil futures expiring in June remained unchanged at $89.49 per barrel, while West Texas Intermediate crude futures increased 0.1% to $84.54 per barrel by 20:24 ET (00:24 GMT).

US inventories show larger-than-expected build- API
The American Petroleum Institute reported late Tuesday that U.S. oil stockpiles increased by more than expected 3 million barrels in the week to April 5.

The data suggested that supplies in the world's largest gasoline consumer may not be as tight as investors expected, particularly given record-high production.

However, a steady drop in gasoline stockpiles indicated that fuel demand remained strong.

The API data often signals a similar result from official inventory data, which is due later on Wednesday.

The United States Energy Information Administration raised its forecast for U.S. oil production this year, a pattern that could signal less tight supplies.

However, the EIA forecasts Brent to average $88.55 per barrel in 2024, up from a previous prediction of $87.

CPI data looms, and the rate outlook remains murky.
Crude markets were focused on U.S. consumer price index inflation data, which was coming later in the day. The figure is largely expected to influence the forecast for US interest rates, as well as provide additional clues for markets' next leg of movement.

Wednesday's CPI report is expected to indicate that inflation increased marginally in March, which bodes poorly for crude markets because it provides the Federal Reserve more incentive to keep interest rates higher for longer.

The CPI number follows a massive nonfarm payrolls print last week. Several Fed officials have also warned in recent sessions that persistent inflation will prevent the central bank from lowering interest rates sooner.

High interest rates and inflation are expected.