Oil steadied amid persistent concerns over the demand outlook following a short-lived bounce on Saudi Arabia’s pledge to cut more supply.
West Texas Intermediate futures traded below $72 a barrel after closing 0.6% lower Tuesday. The US sees its oil demand this year growing at half the rate of 2022 due to waning diesel consumption, according to a government report. Industry data also showed swelling stockpiles at a key storage hub.
Oil has lost 11% this year as a sluggish Chinese recovery and aggressive monetary policy from the Federal Reserve weighed on demand. Russian crude flows are still high even after the nation said it would reduce supply, spurring Saudi Arabia to call on Moscow to be more transparent with its data.
The industry-funded American Petroleum Institute reported US crude stockpiles at the hub of Cushing, Oklahoma, increased by 1.5 million barrels last week, according to people familiar with the figures. Nationwide inventories fell, the API said. Government data is due later Wednesday.
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