Oil prices rose in Asian trade on Thursday, steadying from two days of steep losses as focus remained on the Middle East conflict and more stimulus measures in top importer China.
Gains in crude were limited by strength in the dollar, as traders positioned for key U.S. consumer inflation data due later in the day. Data showing a bigger-than-expected build in U.S. inventories also weighed.
Brent oil future expiring in December rose 0.4% to $76.89 a barrel, while West Texas Intermediate crude futures rose 0.4% to $72.86 a barrel by 21:00 ET (01:00 GMT).
Both contracts slid about 5% in the past two sessions.
Middle East tensions persist amid ceasefire speculation
Hostilities between Israel, Hamas and Hezbollah persisted, with Monday marking a year since the war was declared.
Reports that Hezbollah was pushing for a ceasefire had battered oil markets earlier this week, although no dialogue over the matter appeared to be taking place.
Fears of disruptions in oil supplies, due to a bigger war in the Middle East, served as a major boost to oil prices over the past week, after Iran launched a strike on Israel.
Traders still remained on edge over a potential escalation in the conflict, especially if Israel struck Iran’s oil facilities.
China stimulus in focus
Markets were awaiting more signals on Chinese stimulus measures, after a swathe of monetary stimulus measures from the country largely underwhelmed.
Chinese officials said they will hold a press conference this Saturday to outline plans for more fiscal stimulus.
The country is the world’s biggest oil importer, and is struggling to shore up economic growth. Beijing has also remained largely conservative in doling out more stimulus.
Strong dollar weighs ahead of US CPI
Strength in the dollar weighed on oil markets this week, as traders awaited more cues on interest rates from key consumer price index inflation data due later on Thursday.
The reading comes amid growing doubts that the Federal Reserve will continue to cut interest rates at a fast pace, with traders now seen pricing in a 25 basis point cut as the Fed’s next move.
In the U.S., focus was also on the potential impact of Hurricane Milton, which made landfall in Florida as a category-3 storm. But the storm had largely dodged most oil infrastructure in the Gulf of Mexico.
