After falling to their lowest level this year, oil prices stabilized in early Asian trade on Thursday as production and gasoline stocks in the United States moved higher amid worries that economic slowdowns would dampen fuel demand.
Brent crude futures were up 58 cents or 0.75% at $77.75 per barrel by 9.56 A.M. (Thai time), while the West Texas Intermediate (WTI) crude futures gained 63 cents or 0.87% to $72.64 per barrel.
On Wednesday, Brent finished below the year’s previous closing low, hit on the first day of 2022, while US West Texas Intermediate crude fell to a new yearly low.
The Energy Information Administration reported on Wednesday that US crude output increased to 12.2 million barrels per day last week, the highest level since August.
Even while crude supplies dropped last week in the United States, gasoline and distillate stockpiles rose, causing more worry about slowing demand. In the past week, gasoline stocks increased by 5.3 million barrels to 219.1 million barrels, while distillate stocks, which include diesel and heating oil, increased by 6.2 million barrels, as reported by the EIA.