The oil price remains slightly consolidated along the lower edge of the box, waiting for the direction to be selected

Oil prices rose slightly on Wednesday on expectations that crude oil demand in the United States and Asian countries will remain stable, reflecting an improved economic outlook in the world's two largest crude oil consumers.

Brent crude oil futures rose 29 cents, or 0.42 per cent, to $69 a barrel, while US WTI crude rose 40 cents, or 0.6 per cent, to $66.92 a barrel, reversing losses in the previous two days.

This round of rebound was also boosted by the US API crude oil inventory data. According to market research, the latest data from the American Petroleum Institute (API) showed that crude oil inventories unexpectedly decreased by 3.60 million barrels in the week ended July 12, far better than the market expected increase of 1.50 million barrels, indicating that US crude oil demand remains strong.

Markets had reacted coolly to the impact of the US president's threat to tax Russian oil, as the broader market remained focused on signs of recovery on the demand side.

Oil prices have remained in a narrow range recently, due to a pick-up in fuel consumption driven by summer travel and concerns that U.S. tariffs could dampen economic growth and energy consumption.

"Summer travel spikes and rising industrial activity are supporting oil prices," LSEG analysts said in a note.

They added: "There was a marked increase in gasoline consumption during the US Independence Day period, indicating strong fuel demand, which to some extent eased pressure from rising inventories and trade concerns."

Although Asian countries' economic growth slowed in the second quarter, it was less than market expectations. In part, the reason is that companies buy in advance to avoid potential US tax hikes.

Crude oil processing volumes in Asian countries surged 8.5 per cent year-on-year in June, the highest level since September 2023, according to data, which pointed to improved profits at national refineries as driving a positive pick-up in refining activity.

"Fuel demand has picked up steadily as refinery operations pick up," the market consultancy said.

At the same time, the Organization of the Petroleum Exporting Countries (OPEC) released a monthly report on Tuesday also strengthened market confidence. OPEC expects that the global economy will be better in the second half of this year than in the first half, and oil demand is expected to further improve.

"Economic growth in India, Asian countries and Brazil exceeded expectations, while the US and European Union economies also gradually recovered from last year's downturn," the report said.

From the daily chart trend, US crude oil rebounded after building a double-bottom structure near $66. The current price stood firm at the 20-day moving average and broke through the short-term downward trend line. The MACD indicator shows that the kinetic energy column has turned from negative to positive, and the short-term kinetic energy has increased.

If the subsequent break through the $70 resistance level, it is expected to further test the $72.5 area; conversely, if it falls below $66, it may test the $64 support area.