Oil prices edge higher, traders are closely watching signs of tightening in the market.

After two days of decline, oil prices rebounded slightly, as traders evaluated signs of short-term strength in the market before focusing on U.S. inventory data. Brent crude prices rose to $69 per barrel, while West Texas Intermediate crude prices approached $67 per barrel. The short-term market structure of crude oil still indicates tight supply. The prompt price differential of Brent crude remains at a discount of over 90 cents per barrel, indicating that traders need to pay a premium for more immediate supply. Meanwhile, an industry estimate shows a slight increase in crude oil inventories nationwide, with official data to be released later on Wednesday. Traders may closely monitor changes in gasoline inventories, as they recently hit their lowest levels since 2005. Brent crude futures for September delivery rose 0.4% to $69 per barrel; WTI crude futures for August delivery rose 0.6% to $66.90 per barrel.