By Jack Wittels and Nicholas Lua

(Bloomberg) -- Oil inched higher for a third day after the United Arab Emirates energy minister pointed to healthy demand, while attacks on Red Sea shipping continued.

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Brent traded above $70 a barrel, erasing an earlier dip. The UAE’s Suhail Al Mazrouei said a lack of major inventory builds shows “the market needed those barrels” announced by OPEC+.

In the Red Sea, meanwhile, Houthi attacks on cargo ships have killed three crew members, sank one vessel and left a second without propulsion.

“Current market conditions are reasonably tight,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “But I’m still somewhat concerned a surplus will grow into the autumn months as demand slows.”

Oil surged during the Israel-Iran conflict, with Brent topping $80 a barrel, and has since retreated sharply. Attention has now shifted to OPEC+ supply and US trade policy, with multiple analysts highlighting near-term market tightness.

Along with the UAE’s comments and more violence in the Red Sea — a key trade route for oil — Russia’s crude shipments have recently plunged, pressuring supplies.

In the US, inventories rose by 7.1 million barrels last week, according to the American Petroleum Institute. That would be the largest increase since January if confirmed by government data due later on Wednesday.

“The market remains tight in the near term,” ING Bank NV said in a report. “This will likely persist through the northern hemisphere summer, when we see seasonally stronger demand. The oil market only starts to loosen from the fourth quarter.”

--With assistance from Sarah Chen.

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