Oil prices mixed amid supply fears and China’s weak economic data

By Sibel Morrow

ANKARA (AA) - Oil prices were mixed in early trade on Thursday despite an estimated fall in US crude oil stockpiles and tightening supplies following Saudi Arabia and Russia’s output curbs, as waning confidence in China’s economic growth, the world’s largest oil importer country, continued to dampen sentiment.

International benchmark Brent crude traded at $76.47 per barrel at 10.19 am local time (0719 GMT), a 0.23% loss from the closing price of $76.65 a barrel in the previous trading session on Wednesday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $71.88 per barrel, up 0.12% from the previous session's close of $71.79 per barrel.

Late Wednesday, the American Petroleum Institute (API) announced an estimated decrease of 2.4 million barrels in US crude oil inventories, more than the market expectation of a 1.8-million draw and indicative of an uptick in crude demand.

The US Energy Information Administration's (EIA) data on oil stocks will be announced later on Thursday, and if the decline in stock levels is confirmed, prices are expected to increase.

Furthermore, given China's economic challenges in the post-pandemic era, investors are actively tracking economic data from the country.

Data from the National Bureau of Statistics shows that China's factory activity fell for the third consecutive month in June, while non-manufacturing activity plummeted to its lowest level since Beijing eased its tight "zero COVID" policy late last year.

The most recent figures indicate an insufficient rebound in the world's second-largest economy as growth impetus fades.

Meanwhile, after Saudi Arabia and Russia announced production cuts to ensure market balance, the United Arab Emirates disclosed that it would not implement voluntary cuts at this time.

The statement came during the two-day OPEC International Seminar, where OPEC ministers expressed their appreciation to Saudi Arabia, Russia and Algeria for their voluntary cuts.