Oil benchmarks steady

- Advertisement -

SINGAPORE- Oil prices were little changed on Wednesday, after falling the previous day, as a dip in US crude stockpiles and expectations of supply disruptions from sanctions on Russian tankers lent support amid forecasts for lower global fuel demand.

Brent crude futures were up 2 cents to $79.94 a barrel, after dropping 1.4 percent in the previous session. US West Texas Intermediate crude rose 12 cents, or 0.15 percent, to $77.62 a barrel after a 1.6 percent drop.

Prices slipped on Tuesday after the US Energy Information Administration predicted oil will be under pressure over the next two years as supply should outpace demand.

- Advertisement -

However, the market found support on Wednesday from a drop in crude stockpiles in the US the world’s biggest oil consumer, reported by the American Petroleum Institute late on Tuesday and the expectations for supply disruptions after the US Treasury Department imposed sanctions Russian oil producers and its so-called shadow fleet of tankers.

“Oil prices are trading firmer in early morning trading in Asia today after API numbers showed that US crude oil inventories fell more than expected over the last week,” said ING analysts.

The analysts added that while crude oil stocks in the country’s flagship storage hub Cushing, Oklahoma, increased by 600,000 barrels, inventories are still historically low. Cushing in the delivery location for WTI futures contracts.

Author

- Advertisement -

Share post: