OPEC cuts tighten market
U.S. crude inventories likely rose last week
Product inventories expected to have fallen

LONDON, Oct 16 Reuters Oil steadied on Wednesday, supported by OPEC cuts and uncertainty over what may happen next in the Middle East conflict, although an outlook for ample supply next year added downward pressure.

Crude fell more than 4 to a near twoweek low on Tuesday in response to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of supply disruptions.

Brent crude oil futures were down 33 cents, or 0.4, at 73.92 a barrel by 1110 GMT. U.S. West Texas Intermediate crude futures lost 38 cents, or 0.5, to 70.20.

Still, concern about an escalation in the conflict between Israel and Iranbacked militant group Hezbollah persists. OPEC supply curbs remain in place until December when some members are scheduled to start unwinding one layer of cuts.

We would be somewhat surprised if the geopolitical risk premium has disappeared for the time being, said Norbert Ruecker of Julius Baer.

We see the market heading towards a supply surplus by 2025, he added.

On the demand side, the Organization of the Petroleum Exporting Countries and the International Energy Agency this week cut their 2024 global oil demand growth forecasts, with China accounting for the bulk of the downgrades.

Economic stimulus in China has failed to give oil prices much support. China may raise an additional 6 trillion…