Oil maintains gains

Oil holds gains on stockpile data, Iran sanctions focus. Oil held onto gains after a report showed U.S. crude inventories were falling and investors watched for progress on new sanctions on Iran. Brent crude was steady above $88 a barrel after rising 1.6 percent on Tuesday, while U.S. crude was near $83. The American Petroleum Institute (API) reported that crude inventories nationwide fell by 3.2 million barrels last week, according to people familiar with the data. If confirmed by official figures later Wednesday, that would be the first decline in five weeks. The API also pointed to a decline in overall gasoline levels, while oil inventories in central Cushing, Oklahoma, appeared to be shrinking. Meanwhile, the U.S. Senate earlier this month took tougher measures against Iran in response to the attack on Israel, and President Joe Biden said he would sign the legislation into law. The move is not expected to have a significant impact on the market, as some Asian refiners brace for more scrutiny. Crude oil has been on the rise this year, driven by OPEC+ supply cuts as well as geopolitical risks in the Middle East and Russia. Investors are also weighing the outlook for U.S. monetary policy, with slowing growth in U.S. business activity seen as bullish as it feeds expectations for lower interest rates. Data on the Fed’s preferred inflation gauge is due later this week.