Brent crude was steady today, after two-weeks of lows, while increasing concerns about weak economies in the US and China reduced the outlook for oil demand.
Brent was steady near $100 a barrel, after slipping by five cents to $99.90 a barrel, while US crude dropped by 22 cents to $90.81 a barrel, reported Reuters.
Data released by the Energy Information Administration (EIA) showed that US crude stocks increased by 6.7 million barrels to a record 395.3 million in the week to 26 April, which is more than the one million barrels predicted earlier.
On Wednesday, the Federal Reserve announced it will continue buying $85bn in bonds each month to keep interest rates low and try to spur growth.
Investors will now keep a close watch on Friday’s non-farm payrolls, which is another key US economic indicator, to get more indication on the health of the country’s economy.
In China, the official purchasing managers’ index (PMI) slipped to 50.6 in April from an 11-month high of 50.9 in March, while analysts had anticipated an April PMI of 51.0.
On Thursday, the final HSBC PMI also dropped to 50.4 in April, from 51.6 in March.
Image: EIA data showed that US crude stocks rose 6.7 million barrels to a record 395.3 million in the week to 26 April. Photo courtesy of US Department of Energy.