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Oil prices flat as investors weigh China data against OPEC optimism

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

Oil prices were largely unchanged in Asian morning trade as investors weighed optimistic demand forecasts from the OPEC producer group against mixed economic data in top importer China, APA reports citing Reuters.

Brent crude fell 4 cents to $86.36 a barrel at 0310 GMT, while U.S. West Texas Intermediate crude futures were down 2 cents at $82.80 a barrel.

Both benchmarks have been on a sustained rally since June, with West Texas Intermediate crude (WTI) trading on Thursday at its highest this year and Brent hitting its best price since January.

"Oil markets may have been overbought from a multi-week rally, though OPEC+ output cuts and improved demand outlooks remained bullish factors," said Tina Teng, a market analyst at CMC Markets in Auckland.

The Organization of the Petroleum Exporting Countries said on Thursday it expects world oil demand to rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023. Both forecasts were unchanged from last month.

In 2024, "solid" economic growth amid continued improvements in China is expected to boost oil consumption, it added.

Market sentiment was also lifted by Thursday's U.S. consumer prices data for July, which fuelled speculation the Federal Reserve is nearing the end of its aggressive rate hike cycle.