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Oil dips as demand concerns mount

10 August 2023 09:00 (UTC +04:00)

Oil retreated on Thursday from multi-month peaks hit in the previous session as higher U.S. crude inventory and sluggish economic data from China raised concerns about global fuel demand, APA reports citing Reuters.

Brent crude fell 9 cents, or 0.1%, to $87.46 a barrel by 0408 GMT, after settling at its highest since Jan. 27 in the previous session.

West Texas Intermediate crude (WTI) dropped 6 cents, or 0.1%, to $84.34, after settling at its highest since November 2022.

U.S. crude inventories (USOILC=ECI) rose by 5.9 million barrels in the last week to 445.6 million barrels, compared with analysts' expectations in a Reuters poll for a 0.6 million-barrel rise, U.S. Energy Information Administration data showed on Wednesday.

U.S. crude oil exports fell by 2.9 million barrels per day last week, the steepest fall on record, to 2.36 million barrels per day (bpd), according to the data. But the market is going to expect crude exports to go up because of the U.S. crude futures and Brent spread, said Phil Flynn, an analyst at Price Futures Group.