ALBAWABA – Oil prices steadied on Thursday as United States (US) crude inventories data came out showing stockpiles at higher levels than expected, news agencies reported.
September Brent futures dipped $0.02 to $79.44 per barrel and August West Texas Intermediate (WTI) crude rose $0.01 to $75.36 per barrel, Reuters reported.
August WTI contracts expire on Thursday, the news agency noted.
US inventories fell with stockpiles at the Cushing, Oklahoma, storage hub shrinking by the most since October 2021, according to official data.
However, the decline in US crude inventories was offset by a second weekly drop in demand for main oil derivatives, including gasoline, distillates and jet fuel, according to Bloomberg.
With the US dollar picking up, after a slump last week, Bloomberg explained that oil priced in the dollar may be too expensive for some buyers; certainly more expensive for most buyers.
Crude has traded in a narrow range this week, and is still marginally down this year, after making a sharp break higher since late June on signs the market may finally be tightening.
"Following some heavy selling pressure overnight, there is an attempt for oil prices to stabilise this morning," Yeap Jun Rong, market strategist at IG, told Reuters.
Prices fell in the previous session as investors indulged in profit-taking after data showed U.S. inventories fell less than analysts expected.
The outlook for demand in China, the world's biggest crude buyer, was also unclear amid a slowing economy, Reuters underscored
Brent crude prices have broken to a higher range through July, after getting stuck in a $72 to $78 range through May and June, Citi analysts said in a note. Especially with support amid Saudi output cuts and geopolitical risks.
