Investing.com-- Oil prices moved little in Asian trade on Thursday after U.S. inventory data painted a mixed picture of supplies, while easing tensions in the Middle East dented oil’s risk premium.
Crude prices were nursing some losses this week after Israel and Lebanese militant group Hezbollah agreed to a ceasefire deal in Lebanon. But Israel still kept up its offensive in Gaza, undermining expectations for more stability in the Middle East.
Weakness in the dollar helped limit overall losses in oil, while persistent tensions between Russia and Ukraine also kept some risk elements in play.
Brent oil futures expiring in January fell 0.1% to $72.78 a barrel, while West Texas Intermediate crude futures steadied at $68.33 a barrel by 20:31 ET (01:31 GMT).
US oil inventories fall, but gasoline stockpiles rise
Government data showed on Wednesday that U.S. oil inventories shrank by 1.8 million barrels in the week to November 22.
But gasoline inventories rose by 3.3 mb, seeing a second straight week of strong builds, while distillates also grew.
Builds in oil product inventories sparked some concerns that demand was cooling in the world’s biggest fuel consumer, especially as the upcoming winter season deterred travel.
Oil markets are on guard over a potential global supply glut in 2025, spurred chiefly by record-high U.S. production.
Still, weakness in the dollar helped stem bigger losses in crude, especially as traders maintained their bets on a 25 basis point interest rate cut by the Federal Reserve in December.
OPEC+ meeting awaited
Focus in oil markets now turns to an upcoming meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+).
The producer bloc is set to meet on December 1, with reports suggesting that the group will further postpone plans to begin increasing production, amid concerns over slowing demand and high supplies in non-OPEC countries.
China in particular has been a key point of concern for the OPEC, as the world’s biggest oil importer grapples with a sluggish economic recovery and limited stimulus measures.
The geopolitical outlook for China is uncertain in the face of increased U.S. trade tariffs under a Donald Trump administration.
Trump has also vowed to ramp up U.S. energy production.