Oil prices eased on Wednesday, with global benchmark Brent hovering near a one-month low hit in the prior session on signs of weakening demand in China. However, losses were capped by declining U.S. oil stockpiles.
Brent crude oil futures fell 15 cents, or 0.2%, to $83.58 a barrel by 0620 GMT. U.S. West Texas Intermediate crude futures eased 13 cents, or 0.2%, to $80.63.
Both benchmarks had dropped in the three prior sessions, with Brent crude futures trading as low as $83.30 on Tuesday, the lowest since June 17.
China, the world’s top oil importer, saw its economy grow 4.7% in the second quarter, the slowest growth since the first quarter of 2023, according to official data released earlier this week.
China’s Export Surge Masks Economic Struggles Amid Weak Domestic Demand And Trade Tensions
A stronger U.S. dollar has also weighed on oil prices, said ANZ Bank analyst Daniel Hynes in a note. The dollar index was slightly higher for a third consecutive session on Wednesday, making oil more expensive for investors holding 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 by 33,000 barrels. The U.S. Energy Information Administration will release its official storage report at 1430 GMT.
Additionally, retail sales in the U.S. were unchanged in June, as a drop in receipts at auto dealerships was offset by broad strength elsewhere, showcasing consumer resilience that bolstered economic growth prospects for the second quarter.
Rising geopolitical risks also helped limit oil price declines, according to Growmark Energy analysts. A Liberia-flagged oil tanker was assessing damage and investigating a potential oil spill after being attacked by Yemen’s Houthis in the Red Sea, the Red Sea and Gulf of Aden Joint Maritime Information Center (JMIC) said on Tuesday.
