RoydadNaft –  Oil prices rose for a third day on Wednesday after U.S. crude inventories grew less than expected and a cut in the forecast for output growth in the U.S., the world’s biggest producer, eased concerns about potential oversupply.

Brent crude futures were up 26 cents to $78.85 a barrel as of 0914 GMT, while U.S. West Texas Intermediate crude climbed 27 cents to $73.58.

American Petroleum Institute figures showed U.S. crude stocks rose 670,000 barrels in the week to Feb. 2, well below a 1.9 million barrel build forecast from analysts polled by Reuters.

U.S. government weekly data on oil inventories will be released later on Wednesday.

The EIA also forecast U.S. production would not exceed the December 2023 record of more than 13.3 million bpd until February 2025.

The outlook strengthened the case that the oil market will be balanced in 2024, analysts at Haitong Futures said in a note, adding that they expect oil prices to remain in a $10 range around current levels.

“Given the heightened geopolitical risk, the rangebound trading and lack of a risk premium may surprise some,” ING analysts Warren Patterson and Ewa Manthey said in a note.

“It’s important to remember that while we are seeing disruptions to trade flows as a result of Red Sea developments, oil production remains unchanged as a result.”

That comes as struggling large economies, including China’s, dent confidence in the global oil demand outlook.