Oil advances on Gulf tensions but demand concerns cap gains - Reuters

Oil advances on Gulf tensions but demand concerns cap gains - Reuters:

Oil prices edged higher on Thursday amid Middle East tensions and a big fall in weekly U.S. crude stocks, but gains were stemmed by a frail demand outlook amid increasing signs of slowing global economic growth.

Brent crude LCOc1 futures rose 28 cents, or 0.4%, to $63.46 a barrel by 0650 GMT, after dropping 1% overnight - the first fall in four sessions.

U.S. West Texas Intermediate crude CLc1 was up 27 cents, or 0.5%, at $56.15 a barrel, having dropped 1.6% in the previous session.

“We see it as a current tug of war between the bull case of OPEC production cuts, political risk in the Gulf and the recent reduction in crude inventories, versus the bear case of slowing global growth and a ramp-up in U.S. production,” said Hue Frame, managing director at Frame Funds in Sydney.