Oil prices little changed as US stockpile drop offsets global demand woes
2024.09.25 21:25
By Katya Golubkova
TOKYO (Reuters) – Oil prices were little changed on Thursday after falling in the previous session as signs of higher fuel demand and falling stockpiles in the U.S., the world’s biggest oil user, offset concerns over demand elsewhere, particularly in China.
futures were up 9 cents, or 0.12%, to $73.55 a barrel, while U.S. West Texas Intermediate crude rose 4 cents, or 0.06%, to $69.73 per barrel as of 0058 GMT.
Oil prices slumped over 2% on Wednesday as worries over supply disruptions in Libya eased and demand concerns continued despite China’s latest stimulus plans. Oil prices initially rose following the stimulus announcement from the world’s biggest oil importer.
“While the announcement of new stimulus measures by Chinese officials coincided with increases in many commodity prices, the package does not materially alter the outlook for China’s commodity demand,” Capital Economics said in a note.
Signs of the return of Libyan oil to the market are also weighting on prices, after delegates from divided Libya’s east and west have agreed on the process of appointing a central bank’s governor, a step which could help resolve the crisis over control of the country’s oil revenue that has disrupted exports.
The market shrugged off data that showed stronger demand in the United States, ANZ Research said in a note, as the Energy Information Administration (EIA) reported that U.S. oil inventories fell more-than-expected across the board last week.
“Any revival in Libyan production would return to a market that is already beset by concerns of weak demand in the U.S. and China,” ANZ Research said.
Still, gasoline demand on a weekly product supplied basis climbed to over 9 million barrels per day (bpd) last week, the EIA data showed, while distillate fuel supplied to the market rose to over 4 million bpd.
