Oil prices rise:Oil prices rose from two-week lows on Thursday as investors watched developments in the Middle East and more details on China’s stimulus plans, as well as awaiting the release of official data on U.S. oil inventories. .
Brent crude oil futures LCOc1 rose 17 cents, or 0.2 percent, to $74.39 a barrel by 0408 GMT, while U.S. West Texas Intermediate crude CLc1 futures were at 70.58 dollars a barrel, an increase of 19 cents, or 0.3 percent.
Both benchmarks stabilized on Wednesday, closing at their lowest levels since October 2 for the second day in a row.
Benchmark indices are down 6 to 7 percent so far this week after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency cut demand forecasts for 2024 and 2025.
Prices have also fallen as risk premiums have cooled and fears have eased that a retaliatory attack by Israel on Iran could disrupt oil supplies, although uncertainty over the conflict in the Middle East remains.
“We are now playing a waiting game for two things. First, the standing committee of China’s NPC (National People’s Congress) to develop the details and size of the fiscal stimulus package that I think is coming,” Tony Sycamore, analyst IG market center in Sydney, he said.
Investors are awaiting more details from Beijing on its sweeping plans announced on Oct. 12 to revive its ailing economy.
China said on Thursday it would expand a “white list” of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion), aiming to shore up its ailing property market.
Sycamore said Israel’s response to Iran’s recent attack was the second major focus for the market.
“It’s coming, we know, but we don’t know when,” he said, adding that both factors created upside risks for crude oil prices.
In Iran, authorities are working to control an oil spill off the island of Kharg, the country’s IRNA news agency reported Wednesday.
“It appears unrelated to the war between Israel and Hamas, but drew attention to Iran’s oil export facilities,” ANZ analysts said in a note.
In the United States, crude oil and fuel stocks fell last week, market sources said, citing American Petroleum Institute figures on Wednesday, against expectations of a rise in crude stockpiles.
Crude stocks fell 1.58 million barrels in the week ending Oct. 11, the sources said on condition of anonymity. Gasoline inventories fell by 5.93 million barrels and distillate stocks fell by 2.67 million barrels, they said.
Ten analysts polled by Reuters had estimated on average that crude oil inventories rose by about 1.8 million barrels in the week to October 11. EIA/S
“Any sign of weak demand in the EIA’s weekly inventories report could put further downward pressure on oil prices,” ANZ analysts said.
The Energy Information Administration, the statistical arm of the US Department of Energy, will release its data at 11:00 a.m. EDT (1500 GMT) on Thursday.
Also supporting oil prices, the European Central Bank is likely to lower interest rates again on Thursday, the first consecutive cut in 13 years, as it shifts focus from cooling inflation in the euro zone to protecting economic growth.
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