Oil rose ahead of key US inflation data and a monthly report from OPEC that will provide a snapshot on the market.

Brent increased near $73 a barrel after a slight gain on Tuesday, while West Texas Intermediate traded above $69. Consumer price index figures for November are due later Wednesday and will provide clues on the path forward for monetary policy ahead of the Federal Reserve's meeting next week.

Meanwhile, the Biden administration is considering new sanctions on Russia's oil trade, a move that could tighten the market and drive up prices. Details of the possible measures were still being worked out, according to people familiar with the matter.

Crude has traded in a relatively narrow range since mid-October, amid a series of bullish and bearish factors including Middle East tensions and expectations for a global glut. The US Energy Information Administration, however, has reversed its prediction for a surplus and now forecasts a small deficit next year.

The Organization of the Petroleum Exporting Countries will issue its report on supply and demand later Wednesday. That will be followed Thursday by a monthly release from the International Energy Agency.

China is set to start its two-day annual economic work meeting on Wednesday to map out policies for next year, with top leaders hinting at more forceful stimulus. The meeting will likely discuss setting a growth goal for 2025, though specific figures will only be announced in March during a meeting of the legislature.

Brent for February settlement rose 1% to $72.95 a barrel at 9:40 a.m. in London. WTI for January delivery gained 1% to $69.34 a barrel.

Source : Bloomberg