Brent crude futures were stable at $77.20 a barrel and U.S. WTI crude was at $73.10, down 7 cents
Oil prices held broadly steady on Wednesday after a run of declines that have pushed Brent down to around $77, driven by worries over Chinese demand and diminishing concerns about conflict spreading in the Middle East.
Brent crude futures were stable at $77.20 a barrel by 0806 GMT. U.S. WTI crude was at $73.10, down 7 cents.
Since peaking above $82 on Monday last week, Brent had declined 6.2% of its value by the end of trading on Tuesday, closing at a two-week low of $77.20. West Texas Intermediate dropped 7.5% in the same period.
Worries over demand from China, the world’s biggest crude importer, and the dialling back of alarm over war in the Middle East expanding to threaten crude supply, drove those declines.
U.S. crude oil stocks were seen rising last week, as per market sources citing American Petroleum Institute (API) figures on Tuesday. Gasoline and distillate stocks dropped, however, according to the sources.
The US is the world’s biggest producer and consumer of oil, and growing inventories point to oversupply that could pressure prices.
Official U.S. government inventory estimates are set to be released on Wednesday at 1430 GMT.
Hopes of a cease-fire between Israel and Hamas have weighed on oil, along with lingering demand concerns, according to ING commodities strategists.
While weaker Chinese demand has been well reported, refinery margins around the globe have been under pressure for much of August, indicating that these demand concerns are not isolated to just China, they added.
The economic struggles in top crude importer China have continued to impact the market, as weak processing margins and low fuel demand curbed operations at state-run and independent refineries.
