Oil prices decreased on Thursday following weaker US economic growth data for the third quarter and ongoing efforts to secure a ceasefire in the Middle East, while data indicating a decline in US commercial crude oil inventories limited further price decline.
The international oil benchmark of Brent crude decreased by 0.6% to $72.19 per barrel at 10.42 am local time (0742 GMT), down from the previous session’s close of $72.64.
The US benchmark West Texas Intermediate also fell by 0.5% to $68.54 per barrel, compared to $68.91 at the prior session’s close.
According to the Commerce Department’s first advance reading released on Wednesday, the US economy expanded 2.8% in the third quarter of 2024. The figure came under market estimates of a 3% growth.
The American economy expanded by 3% in the second quarter of 2024.
The data indicating lower-than-expected economic growth placed downward pressure on oil prices. However, some experts believe that this data suggests the country’s economy is maintaining a stable growth rate ahead of the upcoming presidential elections in the US.
Also, the possibility of a cease-fire in the Middle East, where major oil producers and trade routes reside, aided the decline in oil prices.
Qatar announced on Tuesday that mediation efforts to establish a ceasefire in Gaza are ongoing, expressing optimism for an agreement amid intensified violence.
‘The efforts are ongoing, and we hope for a breakthrough,’ Foreign Ministry spokesperson Majed al-Ansari said at a press conference in Doha, following a recent round of talks hosted by Qatar.
A recent round of talks in Qatar has also included discussions between Israeli Mossad chief David Barnea, CIA Director William Burns, and Qatar’s Prime Minister Mohammed bin Abdulrahman Al Thani, with Sunday’s session reportedly focused on a potential deal with Palestinian resistance group Hamas involving prisoner exchanges and a cease-fire.
Meanwhile, data from the US Energy Information Administration (EIA) released late Wednesday limited downward price movements by alleviating demand concerns amid market players as inventories unexpectedly fell.
US commercial crude oil inventories decreased by around 500,000 barrels to 425.5 million barrels, against the market prediction of 1.5 million barrels rise during the week ending Oct. 25.
Over the same period, gasoline inventories declined by around 2.7 million barrels to 210.9 million barrels.
