Oil prices steady after sharp plummet

Oil rebounded in early Asian trade on Thursday after dipping to this year's low. The drop in oil prices was fuelled by an increase in US factory output and gasoline stocks. At the same time, there are currently more fears that an economic slowdown would dent fuel demand. 

US crude inventories dropped last week. Gasoline and distillate inventories rose, adding to demand worries. According to the Energy Information Administration (EIA), gasoline inventories climbed 5.3 million barrels to 219.1 million barrels over the week. In distillates, which include diesel and heating oil, the EIA estimated an inventory build of 6.2 million barrels. 

The fact that China, one of the largest importers of crude oil, announced COVID-19 easing measures, affected oil prices. 

Meanwhile, as reported by a British Treasury official, Western authorities are negotiating with Turkey over the traffic jam of oil tankers in Turkish waters. A backlog of oil tankers has built up after the imposition of a price cap on Russian crude on December 5.