Oil holds soft tone on oversupply concerns, markets await Fed

Oil prices consolidated losses on Wednesday in Asian trade, after falling by more than 3% to six-month lows in the previous session on oversupply and demand concerns. The market stumbled in overnight trade as firmer-than-expected U.S. inflation readings for November bolstered the view the Federal Reserve was unlikely to cut interest rates early next year, which would weigh on consumption. The U.S. Energy Information Administration also raised its forecast for supply in 2023 by 300,000 barrels per day to 12.93 million barrels per day from its previous report, in its most recent Short-Term Energy Outlook report.