By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia as American Petroleum Institute (API) showed an unexpected drop in U.S. crude and fuel stocks, countering worries over a possible spike in supplies from Iran.

The price rose 0.17% to $90.93 at 10:00 AM ET (3:00 GMT) and fell 0.13% to $89.48.

Investors are now awaiting U.S. crude-oil supply data from U.S. Energy Information Administration. This information is due to be available later today.

Tina Teng of CMC Markets said, “Undersupply has been the main factor that has pumped up crude oil prices.”

Tuesday’s U.S. crude oil supply data from the API showed a drop of 2 million barrels in inventories, against analyst expectations of a 400,000-barrel increase.

Additional data from U.S. Energy Information Administration will be made available at 10:30 AM EST (03:00 GMT).

However, concerns over a potential that would unleash more oil onto global markets weighed heavily on the market.

Brent and WTI dropped about 2% for the second consecutive session on Tuesday as Washington resumed indirect discussions with Iran to renew a nuclear agreement. While an agreement may allow for the lifting of U.S. oil sanctions and increase supply to Iran, there are still some important issues that need to be resolved.

Teng explained that “with the negotiations continuing, the oil price will likely lose steam in the following week despite the bump higher which we’ve seen today,” Teng added, noting that some investors have taken profit as recent prices hit over 7-year highs.

The U.S. could be attracted to oil prices near $100/barrel. EIA projects that U.S. crude oil production will rise by 770,000 barrels per hour to 11.97 Million bpd in the coming year.

The concern about Ukraine was being held off. After meeting with Russian President Vladimir Putin, Emmanuel Macron of France indicated that there are steps to ease the situation and urged everyone to remain calm.