Oil prices held steady on Thursday as fears of weakened demand offset gains from the previous session, which were driven by the impact of Hurricane Francine on U.S. crude production, the world's largest oil supplier.
By 10:55 am AEST (12:55 am GMT) Brent crude futures rose 24 cents, or 0.34%, to $70.86 a barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 20 cents, or 0.30%, to $67.52 per barrel.
The previous session saw both benchmarks rise over $1, gaining more than 2%, as Hurricane Francine led to the closure of offshore platforms in the U.S. Gulf of Mexico and disrupted refinery operations in southern Louisiana following the storm’s landfall on Wednesday.
However, with the storm expected to subside, the oil market's focus returned to signs of weakening demand. U.S. oil stockpiles grew last week as imports increased and exports fell, according to the Energy Information Administration (EIA).
The report also revealed a decline in gasoline demand to its lowest level since May, alongside reduced distillate fuel demand and decreased refinery activity. The U.S. is the world’s largest consumer of oil, and these trends suggest a slowing market.
Earlier this week, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2024 and reduced its projections for next year as well, marking the second consecutive downward revision.
