Oil prices remained at a 14-month low on Thursday, as concerns over weak demand in the US and China, along with potential supply increases from Libya, outweighed a large draw from US crude inventories and delayed output hikes by OPEC+.
Brent crude futures dropped by 1 cent to settle at $72.69 per barrel, while US West Texas Intermediate (WTI) crude fell by 5 cents to $69.15. This marked the lowest close for Brent since June 2023 and for WTI since December 2023.
The US Energy Information Administration reported a larger-than-expected withdrawal of 6.9 million barrels of crude from storage for the week ending August 30, compared to the forecasted 1 million barrels.
OPEC+ also announced a delay in planned output increases for October and November, with the possibility of further adjustments depending on market conditions. Analysts believe this decision will tighten fourth-quarter oil balances, preventing significant supply increases despite slow demand from China.
In contrast, US gasoline futures fell to their lowest level since March 2021, reflecting a build-up of gasoline stockpiles.
Meanwhile, in Libya, some tankers resumed loading crude from storage despite ongoing political tensions that have curtailed production.
US economic data provided mixed signals, with the Fed expected to lower interest rates in mid-September, potentially boosting economic growth and oil demand. However, private job growth hit a 3.5-year low in August, signaling a possible labor market slowdown.
