Oil prices stabilize amid supply data, but demand concerns keep WTI and Brent on track for a weekly drop.
Oil prices are showing signs of stabilization after recent volatility. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery rose by 0.64% to $71.12 per barrel, while Brent crude for December climbed 0.48% to $74.79 per barrel.
Supply and Demand Factors
This comes as U.S. Energy Information Administration (EIA) data reveals a drop in oil, gasoline, and distillate inventories, indicating tighter supplies. U.S. crude oil stocks fell by 2.19 million barrels, while gasoline inventories decreased by 2.2 million barrels.
Global Demand Outlook
Despite this uptick, both WTI and Brent are on track for a 6% weekly drop, the biggest since early September. This is driven by lower global oil demand forecasts from OPEC and the International Energy Agency. Additionally, geopolitical risks, including concerns over a potential Israeli attack on Iran, have subsided.
Investors remain focused on economic data from the U.S. and China, hoping for signs of demand recovery, especially given recent stimulus measures in China.