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2024.04.1809:50:00UTC+00Oil Extends Losses On Demand Worries

Oil prices traded lower on Thursday as concerns about weakening global oil demand overshadowed the recent reinstatement of U.S. sanctions on Venezuela's oil industry.

Brent crude futures dipped 0.6 percent to $86.77 a barrel after a 3 percent fall in the previous session on concerns over rising U.S. stockpiles and subdued global demand. WTI crude futures were down 0.7 percent at $82.14.

Demand worries returned to the fore, with a JP Morgan's report highlighting that demand has been running 200,000 barrels per day (bpd) below their forecast since April.

Adding to the bearish sentiment, a report from the Energy Information Administration showed an extended surge in U.S. crude oil inventories.

The report said crude oil inventories jumped by 2.7 million barrels last week after spiking by 5.8 million barrels in the previous week. Economists had expected crude oil inventories to rise by 1.6 million barrels.

The lack of an obvious Israeli or U.S. response to Iran's weekend attack on Israel also kept prices under pressure.

It is believed that Israel will show restraint in its response to Iran's recent missile attack, avoiding the Islamic republic's oil infrastructure.

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