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Brent crude futures were up 62 cents, or 0.7%, at $94.91 a
barrel by 1120 GMT after touching a session low of $93.33.
U.S. West Texas Intermediate crude was up 39 cents, or 0.4%, at
$89.74 after a session low of $88.27.
"There are two dominant forces in the oil market at the moment;
the economic outlook being the primary downside risk and OPEC+
the upside," said OANDA analyst Craig Erlam.
"The latter reasserted itself last week with the 2 million
barrel per day cut ... but growth fears are still dominating in
the markets, which may stop the price from taking off."
Last week, the Organization of the Petroleum Exporting Countries
(OPEC) and allies including Russia, together known as OPEC+,
decided to cut their output target by 2 million barrels per day
(bpd).
U.S. President Joe Biden vowed unspecified "consequences" for
relations with Saudi Arabia after the OPEC+ move.
Washington's response has "amplified the initial impact in the
oil market", said Torbjorn Soltvedt, analyst at risk
intelligence company Verisk Maplecroft, adding that the extent
of the impact on oil output may be more muted than suggested by
the OPEC+ decision.
"Saudi Energy Minister Prince Abdulaziz bin Salman has clarified
that the real cut will be lower than the headline 2 million bpd
figure due to several member states falling far short of their
individual production ceilings."
Also on the supply side, Russia's state-owned pipeline monopoly
Transneft on Wednesday said it had received notice from Polish
operator PERN about a leak on the Druzhba oil pipeline, Interfax
reported.
Meanwhile, the U.S. dollar hit a 24-year high against the yen on
Wednesday on concerns about inflation and the pace of increases
to U.S. interest rates.
A stronger dollar makes dollar-denominated commodities more
expensive for holders of other currencies and tends to weigh on
oil and other risk assets.
Also on the downside, the International Monetary Fund on Tuesday
cut its global growth forecast for 2023 and warned of increasing
risk of a global recession.
The U.S. consumer prices report is due on Thursday.
(Reporting by Noah BrowningAdditional reporting by Mohi Narayan
in New Delhi and Isabel Kua in SingaporeEditing by David
Goodman)
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