Oil eases as weaker demand outlook returns to focus

Oil prices dipped on Thursday as demand concerns tied to a global economic slowdown overshadowed a pending fall in supply with Saudi Arabia’s pledged output cuts.

Brent crude futures fell 21 cents, or 0.3%, to $76.74 a barrel at 0415 GMT, while U.S. West Texas Intermediate crude futures eased 21 cents, or 0.3%, to $72.32 a barrel.

Both benchmarks settled up by about 1% on Wednesday, supported by Saudi Arabia’s plans for deep output cuts, though price gains remain capped by rising U.S. fuel stocks and weak Chinese export data.

“Oil prices have been attempting to recover lately but it has been a struggle,” said Yeap Jun Rong, market strategist at IG.

“A tighter supply but weaker demand outlook could continue to keep oil prices within its wide ranging pattern since the start of the year, with immediate resistance at the $80 level for Brent crude,” Yeap added.

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