Oil prices were higher in Asian trading hours on Wednesday, with market players digesting industry crude inventory estimates and looking ahead to official data.
The US West Texas Intermediate crude contracts were up 0.20 percent to $63.67 per barrel as of 04:40 GMT. Meanwhile, Brent futures rose 0.18 percent to $67.54 a barrel.
Crude benchmarks settled near three-week peaks as rising geopolitical tensions in the Middle East offset worries over an increasing US oil production.
Last week, the US Energy Information Administration said US crude output increased to 10.38 million barrels per day, surpassing OPEC’s de-facto leader Saudi Arabia.
Market players are concerned that the Trump administration may toughen sanctions against Iran in the light of a meeting with Saudi Crown Prince Mohammad Bin Salman this week.
“The Iran deal is coming up. It’s probably another month or so, and you’re going to see what I do,” Trump said from the White House on Tuesday.
“Iran has not been treating that part of the world or the world itself appropriately. A lot of bad things are happening in Iran.”
If President Trump decides to scrap the deal, that would lead to re-imposition of sanctions on Iran, disrupting the country’s production.
Ahead in the day, investors will be focusing on official inventory data by the US Energy Information Administration as of 14:30 GMT.