Oil prices decreased on Thursday with data indicating a slowdown in China’s economic activity and weak demand outlook in the US and OPEC countries, including Russia.
The international benchmark Brent crude fell by 0.1%, settling at $75.87 per barrel at 11.46 p.m. local time (0846 GMT), down from $75.98 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) decreased by 0.2%, falling to $72.73 per barrel, compared to its prior session close of $72.88.
The US Energy Information Administration (EIA) reported a lower-than-expected drawdown in US commercial crude oil inventories for the week ending Jan. 3.
US commercial crude oil inventories decreased by around 1 million barrels to 414.6 million barrels, lower than the market prediction of 1.8 million barrels decline, according to data released by the EIA late Wednesday.
Over the same period, the data revealed that gasoline inventories rose by around 6.3 million barrels to 237.7 million barrels.
The lower-than-expected drop in stocks and the rise in gasoline inventories suggest weakened demand in the world’s largest oil-consuming country, contributing to downward price movements.
Meanwhile, concerns over a slowdown in economic activity of China, the world’s largest oil importer, applying downward pressure on prices.
China’s monthly consumer prices index came in flat in December, compared to a 0.6% decline in the prior month, official data from the National Bureau of Statistics showed Thursday.
On an annual basis, consumer prices index in the country increased by 0.1%, in line with expectations, while wholesale prices fell for the 27th consecutive month, with China’s producer price inflation dropping 2.3% year-on-year in December.
Moreover, news reports indicating that oil supply in Russia and OPEC members remained weak in December further fuel concerns about tightening global supply.
The OPEC+ group, which consists of OPEC, led by Saudi Arabia, and non-OPEC oil-producing countries, led by Russia, implemented supply cuts of about 5.85 million barrels per day, including voluntary production cuts.
By Duygu Alhan
