Oil is in a struggle to navigate as the supply and demand outlook is not so clear
Oil prices in Asia fell on Thursday after gaining more than $1 in the previous session as concerns about supply cuts eased and markets looked for evidence of improving fuel demand.
Brent crude futures fell 18 cents, or 0.2%, to $97.22 as of 0419 GMT, while West Texas Intermediate (WTI) crude futures fell 22 cents, or 0.2%, to $91.71.
Oil is struggling to navigate, and it's clear that investors aren't so agreed on the supply and demand outlook.
The U.S. Energy Information Administration (EIA) said U.S. crude inventories increased by 5.5 million barrels in the last week, above the expected increase of 73,000 barrels.
Gasoline product supplies increased to 9.1 million barrels per day in the most recent week, but this figure shows that demand is still down 6% in the last four weeks compared to this period of the previous year.
Over the six-month period, the barrel loading premium for front-month WTI futures was fixed at $4.38 per barrel on Thursday, the lowest level in four months, indicating that tightness in supply is fading.
The Russian state oil pipeline monopoly Transneft said on Tuesday that Ukraine had suspended the flow of Russian oil pipelines to parts of Central Europe because Western sanctions prevented it from receiving transit fees from Moscow.
Transneft restarted the flow of oil through the southern leg of the Druzhba oil pipeline.
The resumption of flows in the Druzhba pipeline from Russia to Europe further calmed market concerns about global supplies.
Meanwhile, worldwide physical oil prices began to decline with futures, reflecting waning concerns about supply disruptions from Russia and growing concerns about a possible global economic slowdown.
The monthly oil reports from the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) are expected to be released later on Thursday.
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