Thursday, 23 May 2024

Oil steady after a sharp decline due to concerns about demand

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Oil prices moved slightly on Thursday, after falling three percent in the previous session, in light of continued market concerns about demand this year and signs that the conflict could be avoided in the Middle East, where a number of major oil producers are located.

According to Reuters, by 06:36 GMT, Brent crude futures rose only 13 cents, or 0.15%, to $87.42 per barrel, while US West Texas Intermediate crude futures increased six cents, or 0.07%, to $82.75 per barrel.

The two crude oil standards fell by 3% during the previous session amid indications that demand for fuel this year is less than expected in light of weak economic growth in China and high oil inventories in the United States, the largest consumer of crude in the world.

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According to JP Morgan estimates, the average global oil consumption since the beginning of April until now has reached 101 million barrels per day, which is two hundred thousand barrels per day less than the bank’s expectations. Since the beginning of the year, demand has increased by 1.7 million barrels per day, less than the bank’s expectation in November of a decrease of two million barrels per day.

High US crude inventories also kept prices in check. The US Energy Information Administration said on Wednesday that crude oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12.

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