Brent crude and West Texas Intermediate prices edged higher on Wednesday as persistent tensions between the US and Iran fuelled supply concerns, while expectations of increased travel-related fuel consumption in China lent additional support.
International benchmark Brent crude traded at $68.81 per barrel at 9.28 a.m. local time (0628 GMT), up 0.08% from the previous close of $68.75.
US benchmark West Texas Intermediate (WTI) increased 0.1% to $64.22 per barrel, compared with $64.15 in the previous session.
Prices drew support from geopolitical risk despite ongoing talks between Washington and Tehran.
US President Donald Trump told Axios he was considering deploying a second aircraft carrier strike group to the region as part of preparations for potential military action if negotiations with Iran fail.
"Either we will reach a deal, or we will have to take very tough measures like last time,” Trump said, adding he hoped a second round of talks would be held next week.
US and Iranian officials met in Oman on Feb. 6 and described the discussions as constructive. However, lingering tensions between the two sides have kept a risk premium in oil prices.
Expectations of increased travel and fuel consumption ahead of China's Lunar New Year holiday also underpinned the market, though recent economic data signaled sluggish growth.
Data released in China showed consumer price growth slowed in January, while producer prices extended declines, highlighting persistent deflationary pressures in the world's second-largest economy.
China's consumer price index rose 0.2% year-on-year in January, below expectations, while the producer price index fell 1.4%.
Low inflation often suggests consumers are spending cautiously. Analysts said the data reinforced concerns over weak demand, limiting gains in crude prices.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr