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Oil eases as weaker demand outlook returns to focus

08 June 2023 09:00 (UTC +04:00)

Oil prices dipped on Thursday as demand concerns tied to a global economic slowdown overshadowed a pending fall in supply with Saudi Arabia's pledged output cuts, APA-Economics reports citing Reuters.

Brent crude futures fell 21 cents, or 0.3%, to $76.74 a barrel at 0415 GMT, while U.S. West Texas Intermediate crude futures eased 21 cents, or 0.3%, to $72.32 a barrel.

Both benchmarks settled up by about 1% on Wednesday, supported by Saudi Arabia's plans for deep output cuts, though price gains remain capped by rising U.S. fuel stocks and weak Chinese export data.

Gasoline inventories climbed by 2.7 million barrels in the week, the EIA said Wednesday, higher than analyst expectations for a 880,000 barrel rise.

Distillate stockpiles rose by nearly 5.1 million barrels in the week, exceeding analyst predictions of a 1.3 million barrel rise.

Meanwhile, U.S. crude inventories unexpectedly fell by 451,000 barrels in the week, as refiners churned out fuel to the highest level since 2019 during the Memorial Day holiday.