LONDON (Reuters) – Oil prices were nearly flat on Thursday as investors awaited developments in the Middle East, the release of official U.S. oil inventory data and details of China’s economic stimulus plan.
At 0834 GMT, Brent crude oil futures were up 25 cents at $74.47 a barrel, while US West Texas Intermediate crude futures were up 25 cents at $70.64 a barrel.
Both indexes calmed down on Wednesday, closing at their lowest levels since October 2 for the second consecutive day after OPEC and the International Energy Agency revised down their demand forecasts for 2024 and 2025.
And while uncertainty remains about how the Middle East conflict will develop, oil supplies could be disrupted by Israel’s retaliatory strikes against Iran in response to Iran’s Oct. 1 missile attack. Concerns about the possibility of this happening have allayed, and prices have fallen.
“Future retaliatory measures against Iran are not yet clear,” said John Evans of oil broker PVM.
He added that the Middle East “certainly provides enough reason to move oil prices again in the near term, and today’s investors will also be hooked on the wealth of financial data.”
That data includes U.S. oil inventories. The Energy Information Administration (EIA) will release official government data at 11:00 a.m. EDT (3:00 p.m. Japan time).
Data released by the American Petroleum Institute on Wednesday showed crude oil and fuel inventories fell last week, contrary to expectations that they would build up, market sources said. (EIA/S)
“Signs of weaker demand in the EIA’s weekly inventory report could put further downward pressure on oil prices," ANZ analysts said.
PVM’s Evans also pointed to U.S. jobless claims data as of 8:30 a.m. EDT Thursday (12:30 p.m. Japan time) and the European Central Bank’s interest rate decisions.
The decision could support oil prices if the bank forces another rate cut, its first consecutive rate cut in 13 years, as it shifts its focus from curbing inflation to protecting economic growth.
Investors are also awaiting further details announced by the Chinese government on Oct. 12 about a broader plan to revive the struggling economy, including efforts to shore up the struggling real estate market.
(Reporting by Paul Kirsten, Florence Tan and Emily Chow in London; Editing by Jamie Freed and Mark Potter)
