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(Bloomberg) — Oil inched up as traders weighed potential supply risks from the Middle East against a weak outlook for global demand.
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West Texas Intermediate rose toward $71 after slipping 0.3% on Wednesday, while Brent closed above $74. Israel stepped up air strikes on Lebanon, while Iran reported an oil leak near a key terminal, heightening attention on the country’s export facilities. The US benchmark had slid almost 7% in the week’s first two sessions after reports that Israel would avoid attacks on Iran’s crude facilities in retaliation for an Oct. 1 attack.
Oil prices have been buffeted this month as concerns over an escalation in the conflict in the Middle East, which supplies about a third of the world’s crude, have been pared by increasing bearish signals. Rising production from outside OPEC and sluggish demand growth will lead to a “sizable surplus” next year, barring any major disruption to flows, the International Energy Agency said this week.
Meanwhile, an industry group reported US crude stockpiles fell 1.6 million barrels last week. That would be the first decline in three weeks if confirmed by official data later Thursday. Traders will also be watching a housing-policy brief in China, after disappointment over an earlier fiscal-policy briefing stoked concerns over demand in the world’s biggest importer.
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