Oil prices were little changed on Thursday, as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.
September Brent futures dipped 2 cents at $79.44 a barrel by 0530 GMT, while August U.S. West Texas Intermediate (WTI) crude rose 1 cent to $75.36 a barrel. The August WTI contract expires on Thursday.
“Following some heavy selling pressure overnight, there is an attempt for oil prices to stabilise this morning,” said Yeap Jun Rong, market strategist at IG.
Prices fell in the previous session as investors indulged in profit-taking after data showed U.S. inventories fell less than analysts expected.
Meanwhile, the U.S. dollar was largely unchanged at 0530 GMT, edging down 0.2%.
The outlook for demand China, the world’s biggest crude buyer, was also unclear amid a slowing economy.
Crude prices may struggle to find a clear direction amid a mixed global demand outlook in the next few weeks, Citi analysts said in a note.
Demand sees “a mixed picture with stronger gasoline and jet fuel demand, but weaker petchems and diesel,” the analysts said.
Brent crude prices have broken to a higher range through July, after getting stuck in a $72 to $78 range through May and June, the Citi analysts added, with support amid Saudi output cuts and geopolitical risks.
(Reporting by Jeslyn Lerh in Singapore; Additional reporting by Laura Sanicola in Washington; Editing by Sonali Paul and Miral Fahmy)