Aug 7 Reuters Oil prices recovered in Asian trading on Wednesday on heightened Middle East tensions, but gains were capped by weak demand.

Brent crude futures rose 17 cents, or 0.16, to 76.60 a barrel by 0615 GMT. U.S. West Texas Intermediate crude rose 17 cents, or 0.23, to 73.37.

Hamas named its Gaza leader Yahya Sinwar as successor to assassinated former chief Ismail Haniyeh on Tuesday, a move that reinforces the radical path pursued since the Oct. 7 attack on Israel.

The uptick in oil prices could possibly be driven by expectations of heightened supply risks due to rising Middle East tensions and a correction from the multimonth low of oil prices. The bearish demand sentiments still remain, and are expected to cap the upside on oil prices, said Vortexa39;s head of Asia oil analysis Serena Huang.

Supporting the bearish demand view, Chinese trade data showed that its July daily crude oil imports fell to the lowest level since September 2022.

The broader price recovery came after prices slipped earlier in the trading session, following U.S. data showing an unexpected build in crude oil and gasoline inventories.

U.S. crude oil, gasoline and distillate inventories rose last week, according to market sources citing American Petroleum Institute figures on Tuesday.

The API figures showed crude stocks were up by 176,000 barrels in the week ended Aug. 2, the sources said, speaking on condition of anonymity. Analysts polled by Reuters had expected crude stocks to fall…