Horizontal trend in oil

Oil prices were flat after falling on Tuesday as industry reports showed a small increase in U.S. crude inventories ahead of official data. Brent traded above $85 a barrel and U.S. crude was close to $81. The American Petroleum Institute reported that crude inventories rose by about 900,000 barrels last week, according to people familiar with the figures. But inventories at the Cushing storage hub have fallen. The Energy Information Administration is scheduled to release data on inventories, refining and fuel demand later Wednesday. Oil is on track for a monthly gain and analysts are growing more optimistic about the outlook for the slumping market in the coming quarter. Rising geopolitical tensions from Yemen to Russia could also support price increases. Investors will be watching inflation and other economic data later this week.