Oil prices remained largely unchanged on Thursday, as the impact of a significant drop in US stockpiles was balanced by ongoing concerns about global demand, particularly in China. US crude inventories decreased by a larger margin than expected, indicating a rise in domestic fuel consumption, which offered some support to prices. However, market participants remained cautious as the economic recovery in China, the world's second-largest oil consumer, continues to struggle. This has raised concerns about the future of global oil demand.
Brent crude futures, a benchmark for global oil prices, rose slightly by 9 cents, reaching $73.55 a barrel. Similarly, US West Texas Intermediate crude saw a marginal increase of 4 cents, settling at $69.73 per barrel. Despite these gains, the market is still weighed down by uncertainty about China's economic outlook. Analysts remain skeptical about whether recent stimulus measures introduced by Chinese authorities will be enough to significantly boost demand.
Additionally, the possibility of Libya's return to the oil market further complicates the outlook. Libya, a key oil producer, has been dealing with disruptions in its oil exports due to internal conflicts. The resolution of these issues could bring more supply to the global market, adding downward pressure on prices. Analysts predict that if Libyan oil production resumes, it could exacerbate the existing oversupply, contributing to further volatility in oil prices.
Despite these challenges, US fuel consumption has shown signs of resilience, with gasoline demand surpassing 9 million barrels per day last week. Distillate fuel demand also increased, reflecting strong domestic consumption trends.
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Oil prices remain steady as US stockpiles decline, offsetting global demand concerns. Learn more about the latest updates on oil markets.
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