Oil prices steady as slowing demand offsets tight supply

By Shariq Khan

NEW YORK (Reuters) – Oil prices remained steady in early Asian trading on Wednesday, with global benchmark Brent hovering near the one-month low hit in the previous session, while signs of weakening growth of demand in China collided with the prospect of a decline in the US. oil stocks.

Brent crude oil futures fell 11 cents, or 0.1%, to $83.62 a barrel by 0010 GMT. West Texas Intermediate crude oil futures also fell 11 cents, or 0.1%, to $80.65 per barrel.

Both benchmarks have fallen in the previous three sessions, with Brent crude futures trading at $83.30 on Tuesday, the lowest level since June 17.

Demand concerns in China continue to weigh on sentiment, wrote ANZ Bank analyst Daniel Hynes. The economy of the biggest oil importer grew 4.7% in the second quarter, official data showed earlier this week, the slowest growth since the first quarter of 2023.

A stronger U.S. dollar also weighed on oil prices, Hynes wrote. The dollar index rose slightly for the third consecutive session on Wednesday, making oil more expensive for investors holding other currencies.

Concerns about demand and the strength of the dollar offset signs of supply constraints in the United States, the world’s largest oil producer and consumer.

U.S. crude oil inventories fell by 4.4 million barrels in the week ended July 12, market sources said Wednesday, citing data from the American Petroleum Institute.

Analysts consulted by Reuters estimated that oil stocks would fall by 33,000 barrels. The US Energy Information Administration will release its official storage report at 2:30 pm GMT.

Meanwhile, rising geopolitical risk is helping limit the oil price decline, analysts at Growmark Energy said.

A Liberian-flagged oil tanker was assessing damage and investigating a potential oil spill after it was attacked by Yemen’s Houthis in the Red Sea, the Red Sea and Gulf of Aden Joint Maritime Information Center (JMIC) said on Tuesday. fair.

(Reporting by Shariq Khan in New York; Editing by Christopher Cushing)