Oil Prices Stable Amid Flurry of Weak Economic Data

LONDON, Oct 24 (Reuters) – Oil prices were stable on Tuesday following the previous session’s dip after a flurry of economic data from Germany, the wider euro zone and Britain sketched a bearish picture which could weigh on oil demand.

Brent crude futures were up 41 cents, or 0.5%, at $90.24 a barrel by 1122 GMT, while U.S. West Texas Intermediate crude futures rose 38 cents, or 0.4%, to $85.87 a barrel.

Euro zone business activity took a surprise turn for the worse this month, data showed on Tuesday, suggesting the bloc may slip into recession.

German readings suggested a recession in the country is well underway, while Britain’s businesses reported another decline in activity this month, underlining the risk of recession ahead of the Bank of England’s interest rate decision next week.

Further business activity data from the United States is due at 1345 GMT.

Meanwhile, the International Energy Agency said it expected fossil fuel demand to peak by 2030 based on governments’ current policies.

Both oil benchmarks fell more than 2% on Monday as diplomatic efforts in the Middle East, the world’s biggest oil-supplying region, intensified to contain the conflict between Israel and Hamas.

Hamas on Monday said it had freed two Israeli women, while sources said the U.S. had advised Israel to hold off on a ground assault in the Gaza Strip.

Julius Baer analyst Norbert Ruecker said “the risk premium inherent to oil prices should disappear within weeks…we see prices heading lower into next year.”

In the U.S., crude stockpiles were expected to have risen last week, a preliminary Reuters poll showed on Monday.

The report from the American Petroleum Institute industry group is due at 2030 GMT on Tuesday and the Energy Information Administration report at 1430 GMT on Wednesday.