Brent crude futures were down 55 cents, or 0.75%, to $72.91 a barrel, while U.S. WTI crude declined 55 cents, or 0.79%, to $69.14 per barrel
Oil prices dropped on Thursday, reversing earlier gains, as news of top exporter Saudi Arabia giving up its crude oil price target in preparation for expanded production weighed on the market.
Brent crude futures were down 55 cents, or 0.75%, to $72.91 a barrel, while U.S. WTI crude declined 55 cents, or 0.79%, to $69.14 per barrel as of 0502 GMT.
Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude as it prepares to raise output, the Financial Times reported on Thursday, citing people familiar with the matter.
Oil prices had edged up earlier in the session, as signs of stronger fuel demand and dropping inventories in the US, the world’s top crude oil consumer, eclipsed worries over global demand prospects, particularly in China.
With regards to China, on top of this week’s easing measures announced on Tuesday, fiscal stimulus is likely required to boost household consumption, and to reignite flagging spirits, according to Tony Sycamore, market analyst at IG.
Signs of the return of Libyan oil to the market are also weighing on prices, after delegates from Libya’s east and west agreed on the process of appointing a central bank governor, a step which could help resolve the crisis over control of the country’s oil revenue that has disrupted exports.
The market shrugged off data that showed stronger demand in the US, ANZ Research said in a note, as the EIA reported that U.S. oil inventories declined more-than-expected across the board last week.
Any revival in Libyan production would return to a market that is already beset by concerns of weak demand in the U.S. and China, ANZ said.
Still, gasoline demand on a weekly product supplied basis jumped to more than 9 million bpd last week, according to the EIA data, while distillate fuel supplied to the market increased to more than 4 million bpd.
