Oil prices found stability following a recent decline, supported by indications of a decrease in US crude stockpiles as reported by the American Petroleum Institute. Brent hovered just under $84 per barrel, while West Texas Intermediate remained near $81. The reported 4.4 million barrel reduction in US crude inventories marks the third consecutive weekly decline, the longest such streak since September last year.
Despite ongoing support from OPEC+ production cuts, oil prices have retreated from earlier peaks amid concerns over subdued demand in China, the world’s largest oil importer. China’s economy showed its slowest growth in five quarters for the period ending June, influencing weaker expectations for global oil demand growth, according to the International Energy Agency.
Commenting on China’s economic data, Yeap Jun Rong, market strategist at IG Asia Pte, highlighted doubts about optimistic forecasts for Chinese oil demand. Expectations for robust stimulus measures from China’s ongoing Third Plenum have also moderated.
Meanwhile, Russia has announced plans to implement additional cuts in crude production during the current and next warm seasons to compensate for exceeding its OPEC+ production quota. Although Moscow missed the deadline to submit the compensation schedule by June 30, it intends to release the details soon.
