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Picture: REUTERS
Picture: REUTERS

Singapore — Oil prices were little changed on Thursday after falling in the previous session, as signs of firmer fuel demand and falling inventories in the US, the world’s top crude oil consumer, outweighed worry over global demand prospects.

Brent crude futures were up 6c, or 0.08%, to $73.52 a barrel, while US West Texas Intermediate (WTI) crude rose 2c, or 0.03%, to $69.71 a barrel as of 3.45am GMT.

Oil prices lost more than 2% on Wednesday as worries over supply disruptions in Libya eased and demand concerns continued despite China’s latest stimulus plans. Oil prices initially rose following the stimulus announcement from the world’s biggest oil importer.

“With regards to China, on top of this week’s easing measures announced on Tuesday, fiscal stimulus is likely required to boost household consumption, and to reignite flagging animal spirits,” said Tony Sycamore, market analyst at IG.

Signs of the return of Libyan oil to the market are also weighing on prices, after delegates from divided Libya’s east and west have agreed on the process of appointing a central bank’s governor, a step which could help resolve the crisis over control of the country’s oil revenue that has disrupted exports.

The market shrugged off data that showed stronger demand in the US, ANZ Research said in a note, as the Energy Information Administration (EIA) reported that US oil inventories fell more-than-expected across the board last week.

“Any revival in Libyan production would return to a market that is already beset by concerns of weak demand in the US and China,” ANZ said.

Still, petrol demand on a weekly product supplied basis climbed to more than 9-million barrels a day last week, the EIA data showed, while distillate fuel supplied to the market rose to more than 4-million barrels a day.

For the rest of the week, IG’s Sycamore expects markets to focus on month-end positioning.

“Then it’s all about next Friday’s nonfarm payrolls, given the soft consumer confidence numbers earlier in the week, with a wary eye watching events in the Middle East,” he said.

US consumer confidence dropped by the most in three years in September amid mounting fear over the labour market, a survey showed on Tuesday.

The US nonfarm payrolls report is due on October 4.

The US, France and several allies called for an immediate 21-day ceasefire across the Israel-Lebanon border while also expressing support for a ceasefire in Gaza following intense discussions at the UN.

Israel widened its air strikes in Lebanon on Wednesday, killing at least 72 people, according to a Reuters compilation of Lebanese health ministry statements.

Israel’s military chief said a ground assault was possible, raising the fear the conflict could spark a wider war in the key Middle East oil producing region.

Reuters

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