Brent stable despite weak demand fears

Oil drilling rigs

Brent crude was stable in early trade today, Dec. 21, despite concerns about weak global demand after official US data showed that the country's stockpiles rose contrary to expectations.

International benchmark Brent crude was trading at $79.66 a barrel, at 09:01 am Makkah time. West Texas Intermediate (WTI) crude fell 0.12% to $74.13 a barrel, after gaining 0.4% in the previous session.

The Energy Information Administration data, released on Dec. 20, showed that US oil inventories rose by 2.9 million barrels in the week ended Dec. 15, compared to expectations for a decrease of 2.3 million barrels. This points to a slowdown in demand for oil.

“Market focus returned to sluggish global demand as the impact on the Red Sea is seen to be limited on oil as long as it does not spill over into the Strait of Hormuz,” said Tsuyoshi Ueno, Senior Economist at NLI Research Institute, according to a Reuters report.

“A build in US crude stocks and record domestic oil production also added to pressure,” he added.