Oil prices steady as investors weigh Middle East

Crude oil prices were largely unchanged on Thursday as investors weighed the Middle East, U.S. oil inventory data and China's economic stimulus measures.

Brent crude futures rose 25 cents, or 0.6%, to $74.47 a barrel (0834 GMT), while U.S. West Texas Intermediate (WTI) crude futures were up 25 cents at $70.64 a barrel.

Both benchmarks hit their lowest levels since Oct. 2 for a second day on Wednesday, after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency cut their demand forecasts for 2024 and 2025.

Prices fell as concerns eased that an Israeli strike on Iran in retaliation for an Iranian missile attack on Oct. 1 could disrupt oil supplies, but uncertainty over the evolution of the conflict in the Middle East remained.

“We still don’t know what Israel’s response to Iran will be,” John Evans of oil brokerage BVM told Reuters.

‘There will soon be enough new reasons from the Middle East to move oil prices again.’

The Energy Information Administration (EIA) is due to release official data on US oil inventories at 11am ET (1500 GMT).

In the US, the American Petroleum Institute cited figures released on Wednesday that showed a decline in crude and fuel stocks last week, despite an expected increase in crude inventories.

Analysts at ANZ said prices could fall if the EIA’s weekly oil inventory report shows signs of falling demand.

Evans also highlighted US unemployment insurance claims, due at 8:30am (12:30 GMT) on Thursday, and the European Central Bank’s decision to raise interest rates.

If the ECB decides to cut rates, oil prices could receive support.

Investors are awaiting more details on China's Oct. 12 announcement of sweeping plans to revive its slowing economy, including efforts to support the struggling property market.