Oil prices held largely steady on Thursday, as investors eagerly await the release of U.S. inventory data and the upcoming OPEC+ meeting this weekend. Brent crude futures were down 0.44% at $83.23 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.28% to $79.01.
The mixed movement in oil prices came after the release of U.S. economic data, which showed a downward revision in first-quarter GDP growth to 1.3% and slightly higher than expected jobless claims. Analysts noted that this data could be seen as “rate-cut” friendly, as it may prompt the U.S. Federal Reserve to start cutting interest rates sooner than previously expected.
Investors are closely monitoring the potential timeline for central bank rate cuts, as higher borrowing costs tend to impact crude demand. The market is now anticipating the Fed to start cutting rates in September at the earliest, rather than the earlier June timeframe.
Attention will soon shift to the U.S. inventory data from the Energy Information Administration (EIA), scheduled for release on Thursday. Preliminary figures from the American Petroleum Institute (API) suggested a larger-than-expected drawdown in U.S. crude stockpiles last week, which could provide some support to oil prices.
Additionally, the upcoming OPEC+ meeting this weekend is a key focus for the market. With global oil inventories on the rise due to soft fuel demand, there are expectations that the producer group may choose to keep supply cuts in place for the rest of the year to support prices.
The broader risk-off environment has contributed to the recent downward pressure on oil prices, despite the larger-than-expected inventory drawdown. Investors will be closely watching the outcome of the OPEC+ meeting and any further developments in the U.S. economic data for clues on the future direction of oil prices.