Oil prices steadied on Thursday amid mixed signals regarding crude demand. Brent futures rose by 3 cents to settle at $85.11 per barrel, while U.S. West Texas Intermediate (WTI) crude fell by 3 cents to $82.82 per barrel. Investors were torn between concerns about a U.S. economic slowdown and rising expectations that the Federal Reserve might soon cut interest rates. U.S. unemployment claims increased more than expected last week, bolstering the case for potential rate cuts by the Fed, which could spur more oil spending. Fed officials indicated the possibility of rate cuts due to improved inflation and a balanced labor market, possibly as early as September. Despite a drop in U.S. crude inventories by 4.9 million barrels, weak gasoline demand and economic slowdown concerns limited price increases.
In China, slow economic growth and vague policy signals from Beijing also weighed on prices. The European Central Bank kept interest rates unchanged and offered no guidance on future moves, noting high domestic price pressures. An upcoming mini OPEC+ meeting is expected to maintain the current oil output policy without changes, despite plans to start unwinding output cuts from October.