Oil Prices Steady After Slipping on Inventory Surge and Saudi Price Cuts

TDT | Manama

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Global oil markets stabilized on Thursday following a sharp decline of over 1% the previous day, driven by an unexpected rise in U.S. fuel inventories and Saudi Arabia’s decision to slash oil prices for Asian buyers.

By 0800 GMT, Brent crude futures edged up 15 cents, or 0.2%, to trade at $65.01 per barrel. U.S. West Texas Intermediate (WTI) crude also recorded a modest gain of 11 cents, or 0.2%, reaching $62.96 per barrel.

Wednesday’s losses came after official data revealed a larger-than-anticipated build in U.S. gasoline and distillate stocks—an indicator of slowing fuel demand in the world's largest economy. The increase in inventories suggested that consumption was lagging behind supply, stirring concerns about the strength of the ongoing economic recovery.

Adding further pressure to the market, Saudi Arabia, the world’s top oil exporter, announced price cuts for its July crude shipments to Asia, a move likely aimed at maintaining its competitive edge amid fluctuating regional demand.

While prices regained slight ground on Thursday, market sentiment remains cautious as traders weigh the global demand outlook against persistent supply dynamics and geopolitical factors.