U.S. crude stocks rose 670,000 bbl last week API
US EIA cuts oil output growth forecast for 2024
Gaza war ceasefire talks continue
Coming EIA weekly data at 1030 a.m. 1530 GMT

LONDON, Feb 7 Reuters 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 world39;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.

For 2024, the U.S. Energy Information Administration EIA on Tuesday cut its outlook for domestic oil output growth by 120,000 barrels per day bpd to 170,000 bpd, sharply lower than last year39;s 1.02 million bpd output increase.

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.

Meanwhile, U.S., Qatari and Egyptian mediators prepared a diplomatic push to…