Oil stable amid fears of weak demand in US

Oil drilling rigs

Oil prices were stable today, Feb. 29, amid investors' concerns about weak US demand after the weekly data showed that inventories increased more than expected. The risks of continued rise in interest rates also affected prices.

Brent crude was trading at $82.20 a barrel, at 09:32 am Makkah time. West Texas Intermediate (WTI) crude was at $78.60 per barrel.

US Energy Information Administration data showed that oil inventories in the US rose by 4.2 million barrels last week, exceeding expectations for an increase of 3.1 million barrels and marking expansion for the fifth week in a row.

This raised investors' concerns about the slowdown in demand for oil in the world's largest economies, especially in light of expectations that interest rates will continue to rise for an extended period, and the impact this will have on economic growth and overall demand in America.

According to official data issued on Feb. 28, the gross domestic product data for the US during the fourth quarter of 2023 was revised downward to a growth of 3.2% instead of 3.3%, after growth of 4.9% in the third quarter. This was mainly due to a decline in investment in private inventory, along with a slowdown in federal government spending, and consumer spending.