Oil prices slide 1% on weak US inventory draw and Chinese demand worries
Despite these pressures, potential supply disruptions in the Middle East and Libya prevented deeper declines. Libyan crude output has been cut by nearly half this week, with a looming risk of losing up to 1 million barrels per day from the global market.
Oil prices dropped over 1% on Wednesday, driven by a lacklustre decline in U.S. crude stockpiles and persistent concerns over Chinese demand, though geopolitical risks in the Middle East and Libya tempered the losses.
- Brent fell by 90 cents, or 1.13%, settling at $78.65/barrel.
- WTI futures dropped $1.01, or 1.34%, to close at $74.52/barrel.
U.S. government data revealed a modest 846,000-barrel draw in crude inventories last week, falling short of the 3.4 million barrels projected by the American Petroleum Institute (API). This smaller-than-expected reduction amplified market concerns.
China's uncertain demand outlook, as the world's largest crude importer, further weighed on market sentiment.
Despite these pressures, potential supply disruptions in the Middle East and Libya prevented deeper declines. Libyan crude output has been cut by nearly half this week, with a looming risk of losing up to 1 million barrels per day from the global market.
Written by: Rochelle Nguyen