Oil prices fell slightly in Asian trading on Thursday after a surprise increase in U.S. gasoline inventories ahead of the Thanksgiving holiday raised concerns about demand in the world's largest consumer of gasoline. fuel.
Brent oil futures were down 4 cents, or 0.1 percent, at $72.79 a barrel by 0220 GMT, while West Texas Intermediate oil futures were a cent lower at 68 .71 dollars per barrel.
Trade is expected to be weak due to holidays in the United States.
U.S. gasoline inventories increased by 3.3 million barrels in the week ended Nov. 22, the U.S. Energy Information Administration (EIA) said Wednesday, bucking expectations a slight drop in fuel stocks due to the record number of travelers during the holiday season. [EIA/S]
Oil analysts expected U.S. gasoline inventories to fall by 46,000 barrels last week, according to a Reuters poll preceding the EIA report.
Slowing growth in fuel demand in the United States and China has weighed heavily on oil prices this year, although supply cuts from OPEC+, which includes the Organization of Exporting Countries Oil with Russia and other allies, have limited losses.
Two sources from the producers' group told Reuters on Tuesday that OPEC+ members were discussing a further postponement of a planned increase in oil production due to start in January. The group is due to meet on Sunday to decide on its policy for the first months of 2025.
The group, which pumps about half of the world's oil, previously said it would gradually roll back oil production cuts with small increases over several months in 2024 and 2025.
Oil prices were put under pressure this week by the ceasefire agreement concluded between Israel and Lebanese Hezbollah. The ceasefire began Wednesday and helped ease fears that the conflict could disrupt oil supplies to the Middle East's most productive region.
Market participants are unsure how long the pause in fighting will last, with the overall geopolitical backdrop for oil remaining unclear, according to analysts at ANZ Bank.
Oil prices are undervalued due to a market deficit, heads of commodities research at Goldman Sachs and Morgan Stanley warned in recent days, also highlighting the potential risk to Iranian supplies from sanctions which could be implemented under US President-elect Donald Trump.
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