Title: Oil prices hold steady as recession worries offset lower U.S. stocks

Aug 18, 2022 02:40AM ET

By: AnalysisWatch

Oil prices were little changed on Thursday as investors grappled with dwindling U.S. stockpiles, rising output in Russia and concerns about a potential global recession.

Brent crude futures were up 15 cents, or 0.2 percent, to $93.80 per barrel as of 0347 GMT.Crude futures in the United States rose 4 cents, or 0.1 percent, to $88.15 per barrel.

Prices rose by more than 1% in the previous session, despite Brent falling to its lowest level since February.

Futures have fallen over the past few months as investors scrutinized economic data that raised concerns about a potential recession that could hurt energy demand.

UK consumer price inflation jumped to 10.1% in July, the highest since February 1982, adding to pressure on households.

On the supply side, Russia has started to gradually increase oil production after sanctions-related restrictions and as Asian buyers have increased purchases, prompting Moscow to raise its production and export forecasts to the end of 2025, an Economy Ministry document seen by Reuters showed.

According to the document, Russia's energy export revenues are expected to rise 38 percent this year, partly due to higher oil export volumes, a sign that the country's supplies have not been hit as much as markets initially expected.

U.S. crude stockpiles fell by 7.1 million barrels in the week to Aug. 12, according to data from the Energy Information Administration, on expectations for a 275,000-barrel decline as exports hit 5 million barrels a day, the highest on record.

On Wednesday, data from the Joint Organizations Data Initiative showed that Saudi crude exports rose in June while production increased to a more than two-year high.

Firms tracking the flows said Iran's crude exports may rise for a third straight month in August, supported by Chinese demand as Russian oil rises.