Oil steady as US demand flags but Middle East risk mounts

By Noah Browning

LONDON (Reuters) -Oil prices were largely steady on Thursday as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world’s top oil consumer and countered supply concerns stoked by escalating conflict in the Middle East.

Brent crude oil futures were up 43 cents, or 0.5%, at $85.68 a barrel by 0850 GMT. U.S. West Texas Intermediate crude futures rose 42 cents, or 0.5%, to $81.32.

Both benchmarks had settled slightly higher on Wednesday.

The U.S. Energy Information Administration (EIA) reported a 3.6 million barrel jump in the country’s crude oil stocks last week. Analysts polled by Reuters had expected a drawdown of 2.9 million barrels. [EIA/S]

U.S. gasoline stocks also rose, increasing by 2.7 million barrels. That compared with analyst expectations for a 1 million barrel draw.

“The actual readings were nothing short of disappointing for bulls that look for a continued (market) tightening brought about by seasonal demand,” said PVM Oil analyst John Evans.

“If it were not for the steady and incremental ratcheting up of geopolitical risk in the Middle East, oil prices might have found themselves on the back end of a much more negative day.”

Worries over the potential for the the Israel-Hamas war in Gaza spreading to Lebanon limited price declines.

Cross-border strains between Israel and Lebanon’s Hezbollah have been escalating in recent weeks, stoking fears of a war that could draw in other regional powers, including major oil producer Iran.

Turkish President Tayyip Erdogan said his country stood in solidarity with Lebanon and called on the region’s countries to show their support.

Israeli forces pounded several areas across Gaza on Wednesday and residents reported fierce fighting overnight in Rafah in the south of the Palestinian enclave.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Is the U.S. dollar in a bubble

    • March 13, 2025
    Is the U.S. dollar in a bubble

    Hantec Markets Expands Football Ties with Fortaleza EC Following Atlético de Madrid Partnership

    • March 13, 2025
    Hantec Markets Expands Football Ties with Fortaleza EC Following Atlético de Madrid Partnership

    OneRoyal Joins the Financial Commission as Broker Member for Client Protection

    • March 13, 2025
    OneRoyal Joins the Financial Commission as Broker Member for Client Protection

    Trustpilot’s Reputation Casino: Are Brokers and Props Playing or Getting Played?

    • March 13, 2025
    Trustpilot’s Reputation Casino: Are Brokers and Props Playing or Getting Played?

    What Is the Arms Index (TRIN), and How Do You Calculate It?

    • March 13, 2025
    What Is the Arms Index (TRIN), and How Do You Calculate It?

    Brent Rebounds From Six-Month Low. Forecast as of 13.03.2025

    • March 13, 2025
    Brent Rebounds From Six-Month Low. Forecast as of 13.03.2025