Crude oil futures were little changed at midday in Europe Thursday, holding at the lower levels seen Wednesday after weekly US crude data was released.
At 1030 GMT, in its last day of trading, the ICE May Brent crude futures contract was down 5 cents/b from Wednesday's settle at $69.48/b, while the NYMEX May light sweet crude contract was up 13 cents/b at $64.51/b.
The crude complex has backtracked from highs around $71/b for ICE Brent and above $65/b for NYMEX WTI following unsupportive weekly US crude inventories data, analysts said.
Data from the US Energy Information Administration Wednesday showed crude inventories rose 1.643 million barrels in the week ended Friday, March 23, while analysts had expected a build of 1 million barrels.
The Brent/Dubai exchange of futures for swaps -- an indicator of the value of ICE Brent crude futures versus benchmark cash Dubai crude -- was assessed at $4.23/b, a fresh 44-month high amid the recent strength in Brent futures prices.
The uptrend in Brent futures prices has been a major reason behind the widening of the EFS, with the benchmark perceived by many market participants as more sensitive than WTI and Dubai to global economic and geopolitical events, which have predominated discussions in the market recently.
The ongoing geopolitical tensions in the Middle East combined with rhetoric about a US-China trade war, fundamental support from falling US crude inventories and growing global demand have all been contributing factors to the strength seen in prices, analysts said.
Market participants were also focusing on comments made by Iraqi oil minister Jabbar al-Luaibi Wednesday on the possibility of OPEC and its 10 non-OPEC partners extending their production cuts up to the first half of 2019. That provided some support to prices, analysts said.
"By the end of this year, we will assess and decide how to go ahead," al-Luaibi said at the Iraq Energy Forum. "Some are suggesting a three-month extension, some suggest a six-month extension," he said.
The US dollar index was 0.01% lower at 1030 GMT at 90.08.
