Oil prices were little changed on Thursday as a lower-than-expected drop in U.S. crude inventories and a weaker demand outlook kept investors cautious.
Brent futures climbed slightly to $79.52 a barrel while U.S. West Texas Intermediate (WTI) crude gained marginally to $75.40 a barrel. Prices had fallen in the previous session after data showed U.S. inventories fell less than analysts expected.
The demand outlook for China, the world's largest oil buyer, remains unclear amid its slowing economy. Crude prices may lack a clear direction in the coming weeks due to a mixed global demand picture, according to analysts at Citi. Demand for gasoline and jet fuel is stronger but petrochemicals and diesel demand is weaker, they said.
Brent prices have climbed into a higher range above $72 to $78 a barrel in July due to Saudi production cuts and geopolitical risks. However, the overall demand outlook is weighing on bigger gains for now.
Yeap Jun Rong of IG said: "Following some heavy selling pressure overnight, there is an attempt for oil prices to stabilize this morning." The U.S. dollar was largely unchanged, edging lower and providing some support to oil prices.
