U.S. Crude Oil Maintains Gains Amid Global Market Concerns

U.S. crude oil prices held steady above $72 per barrel on Thursday, reflecting a modest 0.91% yearly increase. This comes after a period of volatility driven by weakening demand in China and renewed concerns about the U.S. economy. In contrast, Brent crude has erased all its gains for 2024, now trading at $76.51 per barrel, a 0.67% decline year-to-date.

On Wednesday, oil markets were particularly affected when a significant downward revision in U.S. job growth figures raised doubts about economic resilience. This triggered a more than 1% drop in oil prices, adding to the pressures already stemming from China's sluggish demand.

Analysts believe China's demand outlook poses a more significant risk to global oil markets. In the first half of 2024, China's oil demand grew by just 200,000 barrels per day, far below the 600,000 barrels per day average growth observed from 2016 to 2019. This slowdown is partly attributed to the rapid adoption of electric vehicles and a shift from diesel to liquefied natural gas (LNG) for trucks.

Meanwhile, other energy markets showed mixed results. RBOB gasoline prices increased by nearly 1 cent to $2.21 per gallon, a 5.3% yearly increase. However, despite rising 1.29% to $2.14 per thousand cubic feet, natural gas prices remain down by 14.5% year-to-date.

The transition in China's energy consumption, driven by slower GDP growth and technological shifts, continues to exert downward pressure on oil demand, contributing to the broader challenges facing the global energy market.