By Katya Golubkova
In the volatile world of oil markets, prices remained relatively unchanged on Thursday following a slight dip in the previous session. Signs of increased fuel demand and declining stockpiles in the U.S., the largest oil consumer globally, helped offset concerns about demand, particularly in China.
Oil futures saw a modest uptick, with Brent crude up 9 cents at $73.55 a barrel and U.S. West Texas Intermediate crude rising 4 cents to $69.73 per barrel as of 0058 GMT.
On Wednesday, oil prices took a hit, dropping over 2% as worries about supply disruptions in Libya eased and demand worries persisted despite China’s recent stimulus efforts. Although the stimulus initially boosted oil prices, concerns remain about the long-term impact on China’s commodity demand.
Additionally, the return of Libyan oil to the market is putting pressure on prices, as delegates from the country’s east and west have taken steps to appoint a central bank governor, potentially resolving the crisis over control of oil revenue that has disrupted exports.
While U.S. oil inventories showed a more-than-expected decline last week, indicating stronger demand in the country, concerns about weak demand in the U.S. and China continue to weigh on the market. Gasoline demand in the U.S. climbed to over 9 million barrels per day last week, while distillate fuel supplied rose to over 4 million barrels per day.
In conclusion, the oil market remains in a delicate balance between supply and demand dynamics, with factors like geopolitical tensions, economic stimulus measures, and production disruptions all contributing to price fluctuations. Investors and consumers alike should closely monitor these developments to make informed decisions about their finances and energy consumption.
