Oil rose sharply on Wednesday to climb above $73 a barrel after reports suggested that Russia and Saudi Arabia have started bilateral discussions over possible 2019 oil production cuts.
Saudi Arabia proposed the cuts, Russia's TASS news agency said, citing an unnamed source at the Organization of the Petroleum Exporting Countries.
Global benchmark Brent crude jumped 1.43 percent to $73.16 a barrel, after hitting as low as $71.18 on Tuesday, its lowest level since Aug. 16. U.S. crude futures were up 1 percent at $62.83.
The EIA report on inventories is due later in the day, with economists expecting a build of 2 million barrels in crude oil inventories.
On Tuesday, data from industry group the American Petroleum Institute showed that U.S. crude stocks climbed by 7.8 million barrels in the week ending Nov. 2 to 432 million.
Meanwhile, Iraq, the second-largest producer within the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia, is in talks with international companies to help upgrade its oil production and export capacities, Iraqi Oil Minister Thamer Ghadhban said on Tuesday. The country also plans to boost export capacity.
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