Singapore — Oil prices rose in early Asian trade on Thursday, paring sharp losses over the past two sessions, after industry data showed an unexpected drop in US crude stockpiles last week.
Brent crude futures rose 45c, or 0.6%, to $74.67 a barrel by 00.23am GMT, while US West Texas Intermediate crude futures were at $70.84 a barrel, up 45c, or 0.6%.
Both crude benchmarks settled down on Wednesday, closing at their lowest levels since October 2 for a second day in a row.
The benchmarks are down 6%-7% so far this week after oil cartel Opec and the International Energy Agency cut demand forecasts for 2024 and 2025.
Prices have also fallen as risk premiums have cooled, with fears having eased that a retaliatory attack by Israel on Iran could disrupt oil supplies, though uncertainty remains over conflict in the Middle East.
“We are now playing a waiting game for two things. First, the China NPC standing committee to flesh out the details and the size of the fiscal stimulus package, which I believe is coming,” said Tony Sycamore, IG market analyst in Sydney.
Investors are waiting for further details from Beijing on its broad plans announced on October 12 to revive its ailing economy.
“The second is Israel’s response to Iran. It’s coming, we know that but we don’t know when,” Sycamore said, adding that both factors brought upside risks for crude oil.
In the US, crude oil and fuel stocks fell last week, market sources said, citing American Petroleum Institute figures on Wednesday, against expectations of a build-up in crude stockpiles.
Crude stocks fell by 1.58-million barrels in the week ended October 11, the sources said on condition of anonymity. Petrol inventories fell by 5.93-million barrels, and distillate stocks fell by 2.67-million barrels, they said.
Ten analysts polled by Reuters estimated on average that crude inventories rose by about 1.8-million barrels in the week to October 11.
The Energy Information Administration, the statistical arm of the US department of energy, will release its data at 3pm GMT on Thursday.
Also supporting oil prices, the European Central Bank is likely to lower interest rates again on Thursday, the first back-to-back rate cut in 13 years, as it shifts focus from cooling inflation in the eurozone to protecting economic growth.
Reuters
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