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Oil little changed as demand weakness offsets sanctions-driven supply risks.
Thursday, 12 December 2024 14:29 WIB | OIL |brent oil

Oil prices were little changed in Asian trade on Thursday as forecasts of weak demand and a higher-than-expected rise in U.S. gasoline and distillate inventories stemmed gains from an additional round of EU sanctions threatening Russian oil flows.

Brent crude futures were up 14 cents at $73.66 a barrel at 0519 GMT. U.S. West Texas Intermediate crude futures rose 6 cents to $70.35. Both benchmarks rose over $1 each on Wednesday.

OPEC cut its demand growth forecasts for 2025 for the fifth straight month on Wednesday and by the largest amount yet.

"Investors will be closely monitoring the IEA's market balance estimates for 2025, which will reflect OPEC's recent announcement," analysts at ANZ said in a note on Thursday.

In the world's top oil consumer, the United States, gasoline and distillate inventories rose by more than expected last week, according to data from the Energy Information Administration.

Weak demand, particularly in top importer China, and non-OPEC+ supply growth were two factors behind the move. However, investors anticipate a rise in Chinese demand, after Beijing unveiled plans this week to adopt an "appropriately loose" monetary policy in 2025, which could spur oil demand.

Global oil demand rose at a slower-than-expected rate this month, but has remained resilient, analysts at JPMorgan said in a note on Thursday.

"Growth (in oil demand) over the past week has been tempered by a slight reduction in jet fuel consumption across much of the world," the note read.

Chinese crude imports also grew annually for the first time in seven months in November, up more than 14% from a year earlier.(Cay) Newsmaker23

Source: Investing.com

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