TOKYO, Sept 12 (Askume) – Oil prices held steady on Thursday, erasing the previous session’s gains on worries about a drop in demand, as concerns about the impact of Typhoon Francine on output in the United States, the world’s top crude producer.
November Brent crude futures rose 24 cents, or 0.34%, to $70.86 a barrel. U.S. crude oil futures for October delivery were up 20 cents, or 0.30%, at $67.52 by 0044 GMT.
Both contracts rose more than $1, or 2%, from the previous session as Hurricane Francine devastated southern Louisiana on Wednesday , shutting down offshore platforms in the U.S. Gulf of Mexico and disrupting operations at coastal refineries.
But when the storm finally abated after making landfall, the oil market’s focus returned to falling demand.
US oil inventories rose sharply last week as crude imports rose and exports fell, the US Energy Information Administration said on Wednesday.
The data also showed that gasoline demand fell to the lowest level since May, while demand for distillates also fell and refineries were shut. The United States is the world’s biggest oil consumer.
Earlier this week, the Organization of Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024 and lowered its forecast for next year, its second consecutive reduction.
“Oil traders now await the International Energy Agency’s monthly market report later this week for any signs of softening demand,” ANZ Research said in a note on Thursday.
