Oil prices rose in Asian trading on Wednesday, recovering some recent losses after industry data indicated an unexpected draw in US inventories while concerns over the Middle East conflict continued.

Markets also looked to upcoming key economic data and central bank meetings in major economies, which could impact oil demand forecasts.

By 00:11 ET (04:11 GMT), December Brent oil futures were up 0.5% at $71.50 a barrel, and West Texas Intermediate crude rose 0.6% to $67.63 a barrel. Earlier losses had followed a less intense Israeli strike on Iran, easing fears of a severe escalation in the Middle East. However, Israel’s offensives against Hamas and Hezbollah continued, with no sign of a ceasefire.

The American Petroleum Institute reported a US inventory draw of 0.57 million barrels last week, contrary to expectations of a 2.3 million barrel build, hinting at a tighter supply in the US, the world’s largest oil consumer.

Despite this, US oil demand may decline in winter due to reduced travel and economic pressure from persistent inflation and high interest rates.

The upcoming US presidential election is also a point of uncertainty for markets, with Donald Trump and Kamala Harris in a close race, both promising to boost US oil production if elected.

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