FX.co ★ Oil Holds Steady On Demand Optimism

Oil prices were steady on Thursday after having jumped over 2 percent to a 13-week high on Wednesday, buoyed by data showing a notable drop in gasoline inventories in the U.S. last week.

Benchmark Brent crude futures edged up 0.2 percent to $123.78 a barrel, while WTI crude futures were up 0.1 percent at $122.20.

Oil pared early gains today as Shanghai began imposing new COVID-19 restrictions. The city will lock down a district of 2.7 million people on Saturday to conduct mass coronavirus testing, city authorities said.

Goldman Sachs said it expects Brent crude oil prices to average $140 a barrel between July and September, up from its prior call of $125 a barrel.

The global brokerage firm believes that the structural shortage of crude oil remains unresolved even though oil market touched first surplus since June 2020 in April-May of 2022.

Meanwhile, U.S. gasoline stocks fell despite sky-high pump prices, EIA data showed on Wednesday. Stocks fell by a surprise 0.8 million barrels last week contrary to expectations for a 1.1-million-barrel rise.

UAE energy minister Suhai al-Mazrouei has said that efforts by OPEC and allies to boost output are "not encouraging" with the group currently short of its target by about 2.6 million barrels per day.