NEW YORK/SINGAPORE- Oil prices were steady on Wednesday, with global benchmark Brent hovering near the one-month low it hit in the prior session, as signs of weakening demand growth in China clashed with the prospect of declining US oil stockpiles.
Brent crude oil futures was down by 4 cents to $83.69 a barrel. US West Texas Intermediate crude futures also eased4 cents to $80.72.
Both benchmarks dropped in the three prior sessions, with Brent crude futures trading as low as $83.30 on Tuesday, the lowest since June 17.
While concerns over Chinese demand continue to weigh on investor sentiment, the drawdown in US inventories is a factor limiting the downside in oil prices, said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
“And steady US retail data points out that the economy is still healthy despite higher borrowing costs. This neutralizes fears of a slowdown in the US economy and fears of dented demand for oil.”
China, the world’s top oil importer, saw its economy grow 4.7 percent in the second quarter, official data showed earlier this week, the slowest growth since the first quarter of 2023.
A stronger US dollar has also weighed on oil prices, said ANZ Bank analyst Daniel Hynes in a note. The dollar index was slightly higher for a third consecutive session on Wednesday, making oil more expensive for investors holding other currencies.
