Oil prices were little changed after falling 3% in the previous session, as the market remained concerned about demand this year and signs that a wider conflict in the key producing region of the Middle East could be avoid.
Brent futures were up 29 cents, or 0.3%, at $87.58 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 20 cents, or 0.2%, to $82.89 per barrel at 0413 GMT.
Both benchmarks fell 3% in the previous session on signs that fuel demand this year is weaker than expected due to economic growth in China and rising oil inventories in the United States. -United States, the world’s largest consumer of crude oil.
JP Morgan analysts noted in a late-day note Tuesday that global oil consumption so far in April has been 200,000 barrels per day (bpd) lower than its forecast, averaging 101 million bpd. Since the start of the year, demand has increased by 1.7 million bpd, compared to an estimated 2 million bpd in November.
At the same time, investors are discounting the possibility that Israel might retaliate forcefully against Iran’s missile and drone attack on April 13, following Israel’s alleged assassination of military leaders. Iranians on a Syrian diplomatic site on April 1.
Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries, according to Reuters data, and an easing of its conflict with Israel would reduce the risk of supply disruptions in the Middle East.
“Brent has returned to its levels before the April 1 attack on the Iranian consulate, suggesting that the risk premium linked to tensions between Israel and Iran has eroded,” said Vandana Hari, founder of the oil market analysis company Vanda Insights.
Rising crude oil inventories in the United States also weighed on prices. Oil inventories rose 2.7 million barrels to 460 million barrels in the week ended April 12, according to the Energy Information Administration, nearly double analysts’ expectations, according to a Reuters poll, which expected an increase of 1.4 million barrels.
Inventories have increased due to lower refinery utilization rates at a time when production is increasing.
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of summer demand in the United States.
Gasoline inventories fell by 1.2 million barrels during the week to 227.4 million barrels, according to the EIA.
Stocks of distillates, which include diesel and heating oil, fell by 2.8 million barrels to 115 million barrels, compared with expectations for a drop of 300,000 barrels, data from the EIA.
“A bearish EIA stocks report appears to have been the perfect opportunity for investors to lock in profits after recent gains,” Daniel Hynes, senior commodities strategist at ANZ, said in a published note THURSDAY. (Reporting by Katya Golubkova in Tokyo and Mohi Narayan in New Delhi; Editing by Sonali Paul and Christian Schmollinger)
