Oil edges up from two-week lows as investors await US inventory data
Shafaq News/ Oil prices edged higher on Thursday from two-week lows,with investors eyeing developments in the Middle East and more details onChina's stimulus plans, as well as awaiting the release of official U.S. oilinventory data.
Brent crude futures rose 17 cents, or 0.2%, to $74.39 a barrel by 0408GMT, while U.S. West Texas Intermediate crude futures were at $70.58 a barrel,up 19 cents, or 0.3%.
Both benchmarks settled down on Wednesday, closing at their lowestlevels since Oct. 2 for a second day in a row.
The benchmarks are down 6-7% so far this week after the Organization ofthe Petroleum Exporting Countries (OPEC) and the International Energy Agencycut demand forecasts for 2024 and 2025.
Prices have also fallen as risk premiums have cooled with fears havingeased that a retaliatory attack by Israel on Iran could disrupt oil supplies,though uncertainty remains over conflict in the Middle East.
"We are now playing a waiting game for two things. Firstly the ChinaNPC (National People's Congress) standing committee to flesh out the detailsand the size of the fiscal stimulus package which I believe is coming,"Tony Sycamore, IG market analyst in Sydney, said.
Investors are waiting for further details from Beijing on its broadplans announced on Oct. 12 to revive its ailing economy.
China said on Thursday it would expand a "white list" ofhousing projects eligible for financing and increase bank lending for such developmentsto 4 trillion yuan ($562 billion) as it aims to shore up its ailing propertymarket.
Sycamore said Israel's response to Iran's recent attack was the secondmajor focus for the market.
"It’s coming, we know that but we don't know when," he said,adding that both factors created upside risks for crude oil prices.
In Iran, the authorities are working to control an oil spill off KhargIsland, the country's IRNA news agency reported on Wednesday.
"It appears to be unrelated to the Israel-Hamas war, but it drewattention to Iran's oil export facilities," ANZ analysts said in a note.
In the U.S., crude oil and fuel stocks fell last week, market sourcessaid, citing American Petroleum Institute figures on Wednesday, againstexpectations of a build-up in crude stockpiles.
Crude stocks fell by 1.58 million barrels in the week ended Oct. 11, thesources said on condition of anonymity. Gasoline inventories fell by 5.93million barrels, and distillate stocks fell by 2.67 million barrels, they said.
Ten analysts polled by Reuters had estimated on average that crudeinventories rose by about 1.8 million barrels in the week to Oct. 11.
"Any signs of weak demand in EIA’s weekly inventory report couldput further downward pressure on oil prices," ANZ analysts said.
The Energy Information Administration, the statistical arm of the U.S.Department of Energy, will release its data at 11:00 a.m. EDT (1500 GMT) onThursday.
Also supporting oil prices, the European Central Bank is likely to lowerinterest rates again on Thursday, the first back-to-back rate cut in 13 years,as it shifts focus from cooling inflation in the euro zone to protectingeconomic growth.
($1 = 7.1216 Chinese yuan renminbi)
(Reuters)
