Oil edges up as investors await clarity on supply, Russia-Ukraine deal

Oil prices settled up on Wednesday, bouncing back from one-month lows in the previous session, as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal ahead of the U.S. Thanksgiving holiday.

Brent crude futures settled 65 cents, or 1.04%, higher to $63.13 a barrel, while U.S. West Texas Intermediate crude futures gained 70 cents, or 1.21%, at $58.65.

U.S. crude inventories climbed by 2.8 million barrels to 426.9 million barrels last week as imports surged, the Energy Information Administration said on Wednesday. Analysts had expected a 55,000-barrel rise.

"We are definitely on the road to a rather healthy supply glut, there is no doubt about it, and the crude build is indicative of that," said John Kilduff, partner with Again Capital.

U.S. energy firms cut the number of oil rigs by 12 to 407 this week, their lowest since September 2021, energy services firm Baker Hughes  said on Wednesday.

OPEC+ is likely to leave output levels unchanged at its meeting on Sunday, three OPEC+ sources told Reuters on Tuesday.

Offering some support to crude prices were rising expectations for a potential U.S. Federal Reserve interest rate cut in December. Lower rates would stimulate economic growth and bolster demand for oil.