Oil & Gas Oil prices flat as investors await US data By Reuters October 17, 2024, 8:03 AM Reuters Investors are waiting for further details from Beijing on its broad plans announced on October 12 to revive its ailing economy Oil prices were broadly flat on Thursday as investors waited on developments in the Middle East, the release of official US oil inventory data and details on China’s stimulus plans. Brent crude futures were up 11 cents to $74.33 a barrel at 1114 GMT, while U.S. West Texas Intermediate crude futures were at $70.47 a barrel, up 8 cents. Both crude benchmarks settled down on Wednesday, closing at their lowest levels since October 2 for a second day in a row. The benchmarks are down 6-7 percent so far this week after the Organization of the Petroleum Exporting Countries (Opec) and the International Energy Agency cut demand forecasts for 2024 and 2025. Prices have also fallen as risk premiums have cooled with fears having eased that a retaliatory attack by Israel on Iran could disrupt oil supplies, though uncertainty remains over conflict in the Middle East. “We are now playing a waiting game for two things. Firstly, the China NPC standing committee to flesh out the details and the size of the fiscal stimulus package which I believe is coming,” Tony Sycamore, IG market analyst in Sydney, said. Investors are waiting for further details from Beijing on its broad plans announced on October 12 to revive its ailing economy. “The second is Israel’s response to Iran. It’s coming, we know that but we don’t know when,” Sycamore said, adding that both factors bring upside risks for crude oil. IEA confident global oil supply can absorb disruption Middle East to dominate oil exports by 2050, says Opec The talk is of oil, but gas is most at risk in the Iran-Israel conflict In the US, crude oil and fuel stocks fell last week, market sources said, citing American Petroleum Institute figures on Wednesday, against expectations of a build-up in crude stockpiles. Crude stocks fell by 1.58 million barrels in the week ended October 11, the sources said on condition of anonymity. Gasoline inventories fell by 5.93 million barrels, and distillate stocks fell by 2.67 million barrels, they said. Ten analysts polled by Reuters estimated on average that crude inventories rose by about 1.8 million barrels in the week to October 11. The Energy Information Administration, the statistical arm of the US Department of Energy, will release its data at 15:00 GMT on Thursday. Also supporting oil prices, the European Central Bank is likely to lower interest rates again on Thursday, the first back-to-back rate cut in 13 years, as it shifts focus from cooling inflation in the euro zone to protecting economic growth.
