Oil prices steadied after hitting their lowest levels this month on Wednesday as a surging U.S. dollar weighed on the commodity, and concerns about demand growth clouded the outlook.

Brent, the global benchmark, traded near $72 a barrel, while West Texas Intermediate was above $68. The U.S. currency has strengthened to a two-year high following Donald Trump's election victory, making dollar-priced raw materials more expensive for most buyers.

China's weakening profile in global oil markets was highlighted midweek, with the U.S. Energy Information Administration saying India is now the main source of demand growth in Asia as Chinese consumption slows due to a slowing economy and rising penetration of electric vehicles. Further market analysis is due on Thursday from the International Energy Agency.

Crude has alternated between weekly gains and losses since mid-October, with traders weighing OPEC+ supply moves, U.S. monetary policy and risks to oil demand growth, particularly in China. There are widespread concerns that the global market will turn into a glut next year, with Morgan Stanley cutting its price forecast this week citing a weakening outlook.

"Even as bets for a Fed rate cut increase, the resilience of the U.S. economy is keeping the dollar strong, weighing on oil," said Charu Chanana, chief investment strategist at Saxo Capital Markets Pte in Singapore. Demand concerns persist after OPEC revised its growth forecast lower, and as traders digest what the upcoming Trump presidency could mean for China's outlook, he said.

Source: Bloomberg