Oil prices stabilize amid mixed signals from China, low U.S. inventories

(MENAFN) In early Asian trading on Wednesday, oil prices remained steady as conflicting signals from China and the United States influenced the market. On one hand, signs of weak demand growth in China contributed to downward pressure, while the prospect of a decline in U.S. oil inventories provided some support. Specifically, Brent crude futures dipped by 11 cents, or 0.1 percent, to USD83.62 a barrel by 00:10 GMT, while U.S. West Texas Intermediate (WTI) crude futures also fell by 11 cents, or 0.1 percent, to USD80.65 a barrel.

Both benchmarks have experienced declines over the past three sessions, with Brent crude futures reaching a low of USD83.30 on Tuesday, the lowest level since June 17. The market has been grappling with concerns about demand, exacerbated by a strong dollar, which have overshadowed signs of tightening supplies in the United States. According to market sources citing data from the American Petroleum Institute, U.S. crude oil inventories fell by 4.4 million barrels in the week ending July 12, significantly more than the 33,000-barrel decline expected by analysts. The official inventory report from the U.S. Energy Information Administration is anticipated at 14:30 GMT, which could further influence market dynamics.

Additionally, rising geopolitical risks are playing a role in limiting the decline in oil prices, adding another layer of complexity to the current market environment. These geopolitical tensions help balance out the bearish sentiment stemming from concerns about demand and currency strength, keeping oil prices relatively steady in the face of varied market pressures. 

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