Crude Oil Prices Settle Higher But Fears Over Demand Dent Gains

Investing.com – WTI crude oil prices settled higher on Thursday, but concerns about waning demand kept a lid on gains.

On the New York Mercantile Exchange for September delivery rose 45 cents to trade at $65.46 a barrel, while on London’s Intercontinental Exchange, rose 0.90% to trade at $71.39 barrel.

Oil prices recouped some of their losses from a day earlier on hopes U.S.-China trade talks set to resume later this month would open the door to more constructive talks between the two nations, and ease the economic slowdown in China, the world’s largest oil importer.

Crude oil prices fell to a two-month low on Wednesday as inventories of U.S. crude unexpectedly rose and a U.S.-Turkey feud fuelled fears of contagion in emerging markets dimming the outlook for oil demand.

Inventories of U.S. crude rose by 6.805 million barrels for the week ended Aug. 10, missing expectations for of 2.449 million barrels, according to data from the Energy Information Administration (EIA).

The unexpected build in crude supplies emerged as imports rose by about 1.341 million barrels a day (bpd) while exports fell by 2.58 million bpd, data from EIA showed. An increase in refinery activity, which tends to support demand for crude, did little to limit the build in stockpiles.

A monthly OPEC report released earlier this week exacerbated fears of slowing oil demand growth as the cartel forecast lower demand amid increased non-OPEC supply.

Global oil demand growth for 2019 was lowered by 20,000 barrels per day (bpd) to 1.4 million bpd, while non-OPEC oil supply in 2019 was revised up by 30,000 bpd to 2.13 million bpd.

Crude oil prices are on track for third-straight weekly drop as expectations for steeper losses of Iran crude has struggled to stem the slide in oil prices.

Oil-market observers will likely turn to the Baker Hughes rig count data Friday for signs that U.S. output continues to tighten after data on Wednesday, showed U.S. oil output rose for the time in three weeks.

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