Oil prices stabilized after falling due to US stockpiles and Saudi Arabia's decision
Kyiv • UNN
Prices stabilized after falling more than 1% due to increased gasoline and diesel inventories in the US. Saudi Arabia also cut July prices for Asia.
Oil prices stabilized on Thursday after falling more than 1% the previous day due to increased gasoline and diesel fuel inventories in the United States and a reduction in Saudi Arabia's July oil prices for Asia, UNN writes with reference to Reuters.
Details
Brent crude futures rose 15 cents, or 0.2%, to $65.01 a barrel at 08:00 GMT (11:00 Kyiv time). US West Texas Intermediate crude rose 11 cents, or 0.2%, to $62.96 a barrel.
Oil prices closed about 1% lower on Wednesday after official data showed that gasoline and distillate inventories in the United States rose more than expected, reflecting weaker demand in the world's largest economy.
Saudi Arabia, the world's largest oil exporter, has cut its July prices for Asian oil buyers to near a two-month low.
"Although the (Saudi) reduction was less than expected, it suggests that demand is weak despite entering the peak demand period," ANZ analysts said in a note.
Saudi Arabia's price cuts followed OPEC+'s decision over the weekend to increase production by 411,000 barrels per day in July.
The strategy of the leaders of the OPEC+ group, Saudi Arabia and Russia, is partly to punish overproducers and regain market share, Reuters reported.
Weak US economic data and continued developments in US-China trade relations also put pressure on oil prices, said independent market analyst Tina Teng.
"Simply put, the bleak global economic trajectory has overshadowed the demand outlook," she said.
"Markets are cautiously watching for any progress in trade talks between the world's two leading economies," the expert said.
Data on Wednesday showed that the US services sector contracted in May for the first time in nearly a year.
On trade, US President Donald Trump said on Wednesday that Chinese leader Xi Jinping is a tough man and "extremely difficult to negotiate with," revealing differences between Beijing and Washington after the White House raised expectations for a long-awaited phone call between Xi Jinping and Trump this week.