Oil prices flat as investors await US data

REUTERS - Oil prices were broadly flat yesterday as investors waited on developments in the Middle East, the release of official U.S. oil inventory data and details on China’s stimulus plans.

Brent crude futures were up 11 cents to US$ 74.33 a barrel at 1114 GMT, while U.S. West Texas Intermediate crude futures were at US$ 70.47 a barrel, up 8 cents.

Both benchmarks settled down on Wednesday, closing at their lowest levels since Oct. 2 for a second day in a row, after OPEC and the International Energy Agency cut demand forecasts for 2024 and 2025.

Prices have also fallen as fears eased that a retaliatory attack by Israel on Iran for the latter’s Oct. 1 missile strike could disrupt oil supplies, though uncertainty remains over how the conflict in the Middle East will develop.
“The country’s forthcoming retaliatory measures against Iran are still not clear,” said John Evans of oil broker PVM.
He added that the Middle East “will certainly provide enough reason to move oil prices again soon enough and investors today will also be preoccupied with an abundance of financial data”.

Among that data are U.S. oil inventories. The Energy Information Administration (EIA) will release its official government data.

The American Petroleum Institute’s Wednesday figures showed crude and fuel stocks fell last week, market sources said, against expectations of a build-up in crude stockpiles.

“Any signs of weak demand in EIA’s weekly inventory report could put further downward pressure on oil prices,” ANZ analysts said.