Oil prices traded mixed in on Thursday as weak demand forecasts and a surprise rise in U.S. fuel inventories offset concerns over new European Union sanctions targeting Russian oil.
By 2:50 pm AEDT (3:50 pm GMT) Brent crude futures edged added $0.05, or 0.1% to US$73.57 per barrel, while U.S. West Texas Intermediate crude eased $0.04 or 0.1% to $70.25.
The Organisation of the Petroleum Exporting Countries (OPEC) revised its 2025 demand growth forecast downward for the fifth consecutive month, marking the largest adjustment yet.
In the U.S., data from the Energy Information Administration showed a larger-than-expected increase in gasoline and distillate inventories last week.
Globally, weak demand in major markets like China, coupled with growth in non-OPEC+ supply, has further pressured prices.
However, hopes for a rebound in Chinese oil demand remain as Beijing announced plans to adopt an "appropriately loose" monetary policy in 2025.
Meanwhile, investors are turning their attention to potential interest rate decisions by the U.S. Federal Reserve next week, which could influence global economic activity and oil demand.
On the geopolitical front, European Union ambassadors agreed to a 15th sanctions package targeting Russia, intensifying supply risks. The Kremlin criticised the U.S. for considering tighter sanctions on Russian oil, with officials suggesting these measures could further strain U.S.-Russia relations.