Oil flat as inventories rise, growth concerns linger

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Oil flat as inventories rise, growth concerns linger

Oil prices were barely changed on Thursday as markets weighed a rise in US gasoline and distillate inventories and concerns about slower economic growth amid concerns of supply tightness.

The August contract for crude oil dropped 25 cents, or 0.2%, to $116.01 a barrel in light trading, as the August contract is due to expire on Thursday. The more active September contract was at $112.18, down 27 cents, or 0.2%.

US West Texas Intermediate WTI crude CLc 1 futures fell 19 cents, or 0.2%, to $109.58 a barrel.

Both contracts fell by 2% on Wednesday after The Energy Information Administration EIA said the US crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronaviruses epidemic.

Fuel stocks went up as refiners increased their activity, operating at 95% of capacity, the highest for this time of year in four years.

A stronger dollar pressured prices as it made oil more expensive for buyers using other currencies.

There was some support for prices despite concerns about supply concerns.

The Organization of the Petroleum Exporting Countries OPEC and OPEC, both of which include Russia, began two days of meetings on Wednesday, with sources saying there was little chance of pumping more oil.

There is still uncertainty in global oil and gas markets, and spare capacity is very low while demand is still recovering, according to Ben van Beurden, Shell PLC Chief Executive Officer.