Oil prices remained stable on Thursday after a four-day decline, supported by a drop in US fuel inventories. Brent crude futures rose by 31 cents, or 0.41%, to $76.36 per barrel, while US West Texas Intermediate (WTI) crude futures increased by 18 cents, or 0.25%, to $71.80 per barrel, as of 1031 GMT.
Despite this, both benchmarks have seen significant declines this week, with Brent down 4.2% and WTI crude down 6%. The fall was influenced by concerns over global demand, exacerbated by weaker economic data from China and revised lower US job growth figures.
The US is the largest consumer of oil, while China is the biggest importer. The weaker economic indicators from these key markets have raised worries about oil demand growth.
A US government report revealed a decline in crude, gasoline, and distillate inventories for the week ending August 16, with refinery runs also up. The reduction of 4.6 million barrels was larger than the forecasted 2.6 million barrels, which helped limit losses.
Investors are also anticipating that OPEC+ might adjust its output strategy in October, potentially increasing supply if current price pressures persist. However, ING analysts suggest that if OPEC+ continues with planned supply increases, it might further depress prices.
Concerns about the Israel-Gaza conflict have eased somewhat, with ongoing diplomatic efforts for a ceasefire, which has led to a reduction in perceived geopolitical risks affecting the market.
