Oil narrowly held onto a three-day winning streak as the risk of disruptions in the Red Sea overshadowed an increase in US crude stockpiles.

West Texas Intermediate’s February contract swung in a roughly $US2 range and settled near $US74 after government data revealed a large buildup in US stockpiles and record production, adding to persistent concerns about oversupply. Inventories at the key storage hub in Cushing, Oklahoma, remained at the highest since August, pressuring timespreads.

Bloomberg