Oil Holds Near $80 as US Stockpile Drop Offsets Demand Worries
Oil steadied as persistent demand concerns were offset by declines in crude stockpiles in the US.
(Bloomberg) -- Oil steadied near $80 a barrel in London as traders assessed a mixed picture in the US market and China’s efforts to revitalize its sagging economic growth.
Brent futures were slightly higher on Thursday in thin trading volumes typical for this time of year. US data showed crude inventories at the nation’s storage hub in Cushing, Oklahoma, shrank last week by the most since October 2021. However, that was tempered by a second weekly drop in demand for the main refined products: gasoline, distillates and jet fuel.
Crude has traded in a narrow range this week, and is still marginally down this year, after making a sharp break higher since late June on signs the market may finally be tightening.
“Brent is clearly finding it difficult to convincingly break above $80 a barrel,” said Warren Patterson, head of commodities strategy aat ING Groep NV.
China’s efforts to revive growth, ranging from lower interest rates, easier access to credit and a series of measures to kick-start the moribund housing market have done little to bolster the economy of the biggest crude importer. Another signal that Beijing was seeking to boost corporate confidence came this week, with a joint pledge by the Communist Party and the government to improve conditions for private businesses.
The recent revival in the US dollar, following a slump last week, added to the bearishness for oil, with commodities priced in the currency more expensive for most buyers.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.