Oil prices steady due to IEA report

Oil prices were flat on Wednesday, after declining by more than $1 earlier in the session, according to signs of soaring demand in an International Energy Agency (IEA) report.

Brent crude futures rose 1 cent to trade at $93.20 a barrel.

U.S. West Texas Intermediate crude inched up 4 cents at $87.35.

Prices were flat following some “positive elements” in an IEA report published on Wednesday, according to UBS analyst Giovanni Staunovo.

Moreover, The IEA expects large-scale switching from gas to oil, averaged at 700,000 barrels per day (bpd) in October 2022 to March 2023 – double the level of a year ago. The IEA stated global observed inventories dropped by 25.6 million bbl in July.

And the IEA has expectations around growth in global oil demand to grind to cut off in the fourth quarter of this year as an economic slowdown deepens.