Oil prices were little changed on Thursday while investors grappled with falling stocks in the US, increased production in Russia, and fears of a potential global recession.
Brent crude futures rose 15 cents, or 0.2%, to $93.80 a barrel as of 0347 GMT. West Texas Intermediate (WTI) crude futures rose 4 cents, or 0.1%, to $88.15 a barrel.
Prices rose more than 1% in the previous session, but Brent at one point fell to its lowest level since February.
Futures have fallen in the past few months as investors scrutinize economic data, which has fueled concerns about the potential recession that could hurt energy demand.
Inflation in the UK reached double digits for the first time since 1982. British consumer price inflation jumped to 10.1% in July, reaching its highest level since February 1982, intensifying the pressure on households.
The oil market is stuck in a multi-year tightening cycle, with investors looking for short-term upside catalysts. Recession fears are considered positive, but bullish catalysts such as the return of China or the unpredictable supply from Russia still remain unclear.
China’s refinery production was sluggish in July as tight COVID-19 lockdowns and fuel export controls hampered production.
Regarding oil supply, Russia began to gradually increase oil production following sanctions-related restrictions, prompting to raise its production and export forecasts to the end of 2025 as Asian buyers increase their purchases.
Russia’s earnings from energy exports are expected to rise 38% this year, partly due to higher oil export volumes.
U.S. crude inventories fell by 7.1 million barrels in the week to August 12. Energy Information Administration (EIA) data showed exports fell to a record 5 million barrels per day (bpd), contrary to expectations for a decline of 275,000 barrels per day.
Saudi Arabian crude oil exports rose in June, while production rose to a two-year high, according to data released Wednesday by the Joint Organizations Data Initiative (JODI).
The market also awaits developments from the talks that will revive the 2015 nuclear deal Iran signed with world powers, which could eventually lead to an increase in Iranian oil exports.
Data firms tracking the flows said Iranian crude oil exports could climb for a third straight month in August, supported by Chinese demand as Russian oil becomes more expensive.
