Oil ticked up on Wednesday, stretching its latest recovery on hints of continuous supply turbulent in the Middle East, meanwhile industry figures indicated that the US inventories continued to rise sharply for a consecutive week.

Brent crude advanced by 0.3% to $77.82 per barrel, meanwhile US WTI futures climbed by 0.3% to $72.50 per barrel. After a steep decline at the start of the week, the two contracts were now back near their previous levels.

The week kicked off with a choppy start for crude prices, which rapidly dropped on Monday as Saudi Arabia cut the price it was charging for its oil deliveries in response to declining demand.

However, prices later rose as the Israel-Hamas conflict continued, Libya ceased production at its largest oilfield, and others predicted that the interruptions in Middle Eastern supplies would tighten the oil markets.

2023 saw an over 10% decline in oil prices as worries about slack demand and less volatile markets drove prices lower throughout the majority of the year.

Worries about declining oil demand were influenced by Saudi Arabia's price reductions as well as a run of unfavourable economic data releases from China, the country's largest oil importer.