Oil prices were stable on Thursday after falling sharply the previous day as the oil market weighed weak economic data from China against strong Chinese oil refinery throughput data. Brent crude was up 0.04% while WTI rose 0.01%.
Chinese oil refinery throughput in May jumped 15.4% from a year ago hitting a second high on record, providing some support to prices. However, China's industrial output and retail sales growth in May missed forecasts, pointing to a weaker economy.
Fears of higher interest rates stifling economic activity and oil demand in the U.S. and Europe also capped price gains. The U.S. Federal Reserve signaled rate hikes by year end while the European Central Bank is expected to raise rates later today.
Despite the near-term headwinds, analysts expect supply deficits of 1.5-2 million barrels per day in the coming months due to OPEC+ cuts and Saudi Arabia's voluntary cuts. This could push oil prices higher once inventory declines materialize.
