Oil prices were little changed in early Asian trade on Thursday as forecasts of weak demand and a larger-than-expected rise in U.S. gasoline and distillate inventories muted gains linked to a new round of sanctions of the European Union which threaten Russian oil flows.
Brent oil futures were down 5 cents at $73.47 a barrel by 0141 GMT. West Texas Intermediate oil futures fell 11 cents to $70.18. Both benchmarks rose more than a dollar each on Wednesday.
OPEC cut its demand growth forecast for 2025 for the fifth consecutive month on Wednesday and by the largest amount yet.
“Investors will closely monitor the IEA’s estimates of market balance for 2025, which will reflect OPEC’s recent announcement,” ANZ analysts said in a note on Thursday.
In the United States, the world’s top oil consumer, stocks of gasoline and distillates rose more than expected last week, according to data from the Energy Information Administration.
Weak demand, particularly in China, the largest importer, and growth in non-OPEC supply are the two factors behind this movement. However, investors are anticipating an increase in Chinese demand, after Beijing this week unveiled plans to adopt a “sufficiently loose” monetary policy in 2025, which could boost oil demand.
China’s crude imports also saw annual growth for the first time in seven months in November, up more than 14% from a year earlier.
-The market is now waiting for clues on interest rate cuts by the US Federal Reserve next week.
Prices rose on Wednesday after European Union ambassadors agreed on a 15th package of sanctions against Russia over its war against Ukraine.
The Kremlin said reports of possible toughening U.S. sanctions on Russian oil suggested President Joe Biden’s administration wanted to leave a difficult legacy for U.S.-Russia relations.
Treasury Secretary Janet Yellen said Wednesday that the United States continues to look for creative ways to reduce Russia’s oil revenues, adding that falling global oil demand creates an opportunity for new sanctions.
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