Oil prices steady but set for steep weekly losses on demand fears

Investing.com -- Oil prices steadied Friday, helped to a degree by positive U.S. inventory data, but were headed for their worst week since early-September amid growing concerns over weak demand. 

At 08:30 ET (12:30 GMT), Brent oil futures fell 0.1% to 74.41 a barrel, while West Texas Intermediate crude futures climbed 0.1% to $70.69 a barrel. China GDP grows as expected, stimulus in focus

Data released earlier Friday showed that China’s GDP grew 4.6% year-on-year, largely as expected, while quarter-on-quarter growth slightly missed expectations. This brought year-to-date GDP to 4.8%, still below the government’s 5% annual target. 

The reading underscored the need for more stimulus from Beijing, especially as the world’s biggest oil importer grapples with persistent deflation, weak private spending and a prolonged property market crisis. 

While the country has announced a raft of measures in recent weeks, investors were still underwhelmed by a lack of clarity on the implementation, timing and scale of the planned measures.  US inventories fall

The crude market was helped after data showed U.S. inventories shrank in the past week, offering some positive cues on demand in the world’s biggest fuel consumer. 

Focus also remained on Israel’s retaliation against Iran over a strike earlier in October. Concerns that the strike could disrupt Iranian oil supplies saw traders attach some risk premium to crude.  Oil heads for weekly losses on demand fears 

However, both benchmark contracts were set to lose around 6% this week - their worst weekly performance since early-September - battered by heightened concerns over weak demand, especially after both the International Energy Agency and the Organization of Petroleum Exporting Countries cut their annual forecasts for demand growth. 

Both organizations cited concerns over sluggish Chinese demand, especially as recent economic readings presented little improvement in the country.

(Ambar Warrick contributed to this article.)

Source: Investing.com