FX.co ★ Oil Prices Decline Amid Demand Concerns

Oil prices were moving lower on Thursday as investors weighed demand concerns against potential supply disruptions.

Benchmark Brent crude futures fell 0.7 percent to $93.45 a barrel, while WTI crude futures were down 0.7 percent at $87.86.

Data from the Energy Information Administration (EIA) showed that crude inventories in the U.S., the largest consumer in the world, increased by 2.4 million barrels in the week ended September 9th, suggesting weaker fuel demand.

On Tuesday, a report from the American Petroleum Institute showed crude inventories rose by 6 million barrels last week.

On the positive side, the International Energy Agency (IEA) said Wednesday it expects widespread switching from gas to oil for heating purposes following Russia's decision to halt flows through the Nord Stream pipeline.

The IEA estimates that the switching will occur at a rate of 700,000 barrels per day (bpd) in October 2022 to March 2023 - double the level of a year ago.

The downside also remained capped by speculation the Biden administration may consider refilling U.S. oil reserves at $80 a barrel.