Oil prices edged up on Thursday after Saudi Arabia's state oil company raised its oil prices for March deliveries, yet still remained at around their lowest levels of the year, as a significant rise in US crude oil inventories raised concerns about demand in the world's largest oil consumer.
The international benchmark Brent crude rose by 0.04%, trading at $74.61 per barrel at 10.00 a.m. local time (0700 GMT), up from $74.58 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 0.08%, reaching $71.06 per barrel, compared to its prior session close of $71.
Saudi Aramco increased the price for its Arab Light oil for March deliveries by $2.40, surpassing market prediction of a $2 rise. The adjustment to oil pricing is the largest since August 2022.
Market analysts suggest that the move is in response to supply-side pressures and heightened geopolitical concerns, while also supporting Saudi Aramco's expectation of strong oil demand in the coming months.
A price hike by Saudi Arabia, one of the largest supplier of oil, supports global oil prices.
Meanwhile, data by the Energy Information Administration (EIA) revealed a build-up in US crude oil inventories, strategic petroleum reserves, and gasoline stockpiles.
US inventories of commercial crude oil increased by 8.7 million barrels during the week ending Jan. 31, substantially higher than the market prediction of 5.02 million barrels rise.
Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by 300,000 barrels and gasoline inventories rose by around 2.2 million barrels during the same period.
The larger-than-expected increase in oil inventories exerted downward pressure on prices.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr