Oil prices stagnant amidst lower US crude inventories, demand concerns

July 20, 2023 (MLN): 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, as Reuters reported.

Brent crude is currently trading at $79.43 per barrel, up by 0.10% on the day.

While West Texas Intermediate crude (WTI) is trading at $75.33 per barrel, up by 0.05% on the day.

"Following some heavy selling pressure overnight, there is an attempt for oil prices to stabilize this morning," said Yeap Jun Rong, market strategist at IG.

Prices fell in the previous session as investors took profits after data showed U.S. inventories fell less than analysts expected.

Meanwhile, the U.S. dollar index (DXY) was largely unchanged at 0645 GMT, edging down 0.1%.

The outlook for demand in China, the world's biggest crude buyer, was also unclear amid its 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.

Brent crude prices have broken to a higher range through July, after getting stuck at $72-$78 through May and June, the Citi analysts added, with support from Saudi output cuts and geopolitical risks.

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