Oil holds steady

U.S. crude oil remained unchanged after fluctuating within a nearly $2 range on Tuesday. Biden is set to visit Israel on Wednesday. At the same time, markets remain tense as Israel plans a ground offensive into Gaza.

Earlier, prices fell more than 1% before recovering losses after the Russian Central Bank reiterated expectations that OPEC+ might consider production increases at the beginning of 2024. Shortly after, Russian Deputy Prime Minister Alexander Novak said it was too early to discuss what market decisions OPEC+ might take at its meeting in November.

"Oil is in a wait-and-see mode as investors remain on high alert," said Rebecca Babin, a senior energy trader at CIBC Private Wealth. "Many investors are actively buying upside call options in case crude oil supply is impacted."

Crude oil traders are also monitoring developments in Barbados, where the Venezuelan government is expected to sign an agreement with the U.S.-backed opposition on Tuesday. In exchange for freer presidential elections next year, the deal could pave the way for the U.S. to ease sanctions on the country, potentially increasing oil exports.

The crude oil market remains tense due to the crisis in the Middle East and the risk of it spreading beyond Israel and Gaza, which could potentially jeopardize crude oil flows from key producers.