Brent oil futures expiring in March stabilised at $79.60 a barrel, while WTI crude futures were flat at $74.32 a barrel

Oil prices kept to a tight range in Asian trade on Wednesday as mixed signals on global supply and demand saw Brent struggle to break beyond key levels, while U.S. inventory data also provided differing cues.

Some U.S. oil production capacity came back online after disruptions from cold weather, while production at Libya’s biggest oilfield also restarted earlier this week. This was accompanied by data showing a rise in Norwegian crude output.

While the trend pointed to increased oil supply in the near-term, it was somewhat offset by continued concerns over an escalating conflict in the Middle East.

These differing signals saw crude prices establish a tight trading range this week, and also kept Brent prices from sustainably breaking the $80 a barrel level.

Brent oil futures expiring in March stabilised at $79.60 a barrel, while West Texas Intermediate (WTI) crude futures were flat at $74.32 a barrel by 01:09 GMT.

Both contracts were nursing a weak start to 2024, amid persistent concerns that cooling economic growth this year will weigh on oil demand. Oil prices slipped more than 10% in 2023 on concerns over less tight markets and fading demand.

Weak data from China- the world’s biggest oil importer- was a major point of contention for crude markets, after country clocked weaker-than-expected gross domestic product (GDP) figures in Q4.

Focus is now on a swathe of purchasing managers index (PMI) data from major economies, due this week, to gauge the state of economic activity in January.

Fourth-quarter U.S. GDP data is also due on Thursday, while PCE price index data is due on Friday.

Strength in the dollar- amid growing bets on higher-for-longer U.S. rates- also added to the pressure on oil markets.