As economic concerns clashed with a tighter supply projection for later in the year, oil prices were stable on Wednesday after a surprising increase in U.S. crude inventories fanned demand worries.

Brent crude futures edged up by 0.7% at $74.42 per barrel while US WTI slipped to $70.81.

On Tuesday, the International Energy Agency forecast that in the second half of the year, demand will outstrip supply by 2 million barrels per day, with China accounting for 60% of the increase in oil demand.

Today the U.S. government data on product and crude stockpiles is anticipated.

The market is still being affected by discussions on lifting the US debt ceiling. If Congress does not raise the limit, the U.S. Treasury Department predicts that the country would experience a catastrophic default as early as June 1.

China's industrial production and retail sales growth in April fell short of expectations, indicating that the economy slowed down at the start of the second quarter.