Oil advances on Gulf tensions but demand concerns cap gains
Oil prices edged higher on Thursday amid West Asia tensions and a big fall in weekly US crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.
Brent crude futures rose 28 cents, or 0.4 per cent, to $63.46 a barrel by 0650 GMT, after dropping 1 per cent overnight – the first fall in four sessions.
US West Texas Intermediate crude was up 27 cents, or 0.5 per cent, at $56.15 a barrel, having dropped 1.6 per cent in the previous session.
“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in US production,” said Hue Frame, managing director at Frame Funds in Sydney.
