Oil Prices Steady After U.S. Inventory Build and Saudi Price Cuts
Oil prices held steady on Thursday after a sharp drop the previous day, as traders digested data showing a surprise build-up in U.S. fuel inventories. U.S. gasoline and diesel stockpiles rose despite expectations of a summer demand surge, signaling that consumption may be softer than anticipated in the world’s largest oil consumer.
Brent crude saw a marginal increase of 15 cents to $65.01 a barrel, while West Texas Intermediate (WTI) inched up by 11 cents to $62.96. The stability came after Wednesday’s losses of more than 1% as concerns mounted over slowing demand.
Saudi Arabia Slashes July Oil Prices for Asia
Adding to market caution, Saudi Arabia announced cuts to its official selling prices for crude deliveries to Asia in July. The reductions bring prices near a two-month low, signaling weak regional demand despite entering the high-consumption summer period.
This pricing move follows OPEC+’s recent decision to boost oil output by 411,000 barrels per day in July. The coordinated increase, led by Saudi Arabia and Russia, appears aimed at enforcing discipline among member countries and recovering lost market share in Asia and beyond.
Economic Uncertainty and Trade Tensions Dampen Sentiment
Beyond inventory and pricing dynamics, broader economic indicators added to oil market volatility. A contraction in the U.S. services sector raised concerns about a potential economic slowdown, putting downward pressure on energy demand forecasts.
Tensions in U.S.-China trade relations also influenced market sentiment. Comments from President Donald Trump suggested renewed difficulties in engaging with China’s leadership, particularly with President Xi Jinping, casting a shadow over global trade flows and associated energy demand.
As oil markets navigate these combined pressures—ranging from rising inventories and shifting OPEC+ strategies to geopolitical and macroeconomic uncertainty—analysts expect continued volatility in the near term.
