Shafaq News/ Oil prices were steady on Wednesday, with global benchmarkBrent hovering near the one-month low it hit in the prior session, as signs ofweakening demand growth in China clashed with the prospect of declining U.S.oil stockpiles.
Brent crude oil futures was down by 4 cents to $83.69 a barrel by 0315GMT. U.S. West Texas Intermediate crude futures also eased 4 cents to $80.72.
Both benchmarks dropped in the three prior sessions, with Brent crudefutures trading as low as $83.30 on Tuesday, the lowest since June 17.
While concerns over Chinese demand continue to weigh on investorsentiment, the drawdown in U.S. inventories is a factor limiting the downsidein oil prices, said Priyanka Sachdeva, senior market analyst at Singapore-basedbrokerage Phillip Nova.
"And steady U.S. retail data points out that the economy is stillhealthy despite higher borrowing costs. This neutralizes fears of a slowdown inthe U.S. economy and fears of dented demand for oil."
China, the world's top oil importer, saw its economy grow 4.7% in thesecond quarter, official data showed earlier this week, the slowest growthsince the first quarter of 2023.
A stronger U.S. dollar has also weighed on oil prices, said ANZ Bankanalyst Daniel Hynes in a note. The dollar index was slightly higher for athird consecutive session on Wednesday, making oil more expensive for investorsholding other currencies.
In the United States, the world's largest oil producer and consumer,crude oil inventories fell by 4.4 million barrels in the week ended July 12,market sources said, citing data from the American Petroleum Institute.
Analysts polled by Reuters had estimated crude stocks would fall by33,000 barrels. The U.S. Energy Information Administration will release itsofficial storage report at 1430 GMT.
Supporting oil prices, retail sales were unchanged in June as a drop inreceipts at auto dealerships was offset by broad strength elsewhere, a displayof consumer resilience that bolstered economic growth prospects for the secondquarter.
Meanwhile rising geopolitical risk is also helping limit oil pricedeclines, Growmark Energy analysts said.
A Liberia-flagged oil tanker was assessing damage and investigating apotential 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 onTuesday.
(Reuters)