Oil edges up on smaller US output growth estimates

Brent crude oil price news: Oil prices ticked higher on Wednesday, as growth in US oil production is expected to remain largely steady through 2025, easing worries of excess supply. Brent crude futures rose 38 cents, or 0.5 per cent, to $78.97 a barrel as of 0013 GMT, while US West Texas Intermediate crude climbed 41 cents, or 0.6 per cent, to $73.72. Both contracts had gained slightly on Monday.

US domestic production will not exceed the December 2023 record of more than 13.3 million barrels per day until February 2025, the US Energy Information Administration (EIA) said on Tuesday in its short term energy outlook.

Meanwhile, US, Qatari and Egyptian mediators prepared a diplomatic push to bridge differences between Israel and Hamas on a ceasefire plan for Gaza after the Palestinian group responded to a proposal for an extended pause in fighting and hostage releases.

Traders have been closely following the situation in the Middle East, especially attacks on shipping by Iranian-backed Houthi rebels in the crucial Red Sea that has disrupted traffic through the Suez Canal, the fastest sea route between Asia and Europe and one that sees nearly 12 per cent of the global oil trade.