Some U.S. oil production capacity came back online after disruptions from cold weather, while production at Libya’s largest oilfield also restarted earlier this week. This was accompanied by data showing an increase in Norwegian crude output.

While the trend pointed to increased oil supply in the near-term, it was somewhat offset by continued concerns over an escalating conflict in the Middle East. The Israel-Hamas war raged on, while U.S. and UK forces continued to clash with the Houthis in Yemen and the Red Sea.

These differing signals saw crude prices establish a tight trading range this week, and also kept Brent prices from sustainably breaching the $80 a barrel level.

Both contracts were nursing a weak start to 2024, amid persistent concerns that cooling economic growth this year will weigh on oil demand. Oil prices slide over 10% in 2023 on concerns over less tight markets and waning demand.

Weak data from China- the world’s largest oil importer- was a major point of contention for crude markets, after country clocked weaker-than-expected gross domestic product figures in the fourth quarter.

Focus is now on a swathe of purchasing managers index readings from major economies, due this week, to gauge the state of economic activity in January.

But the API data showed a sustained increase in gasoline inventories and a small draw in distillate stockpiles, indicating that demand in the world’s largest fuel consumer remained weak as cold weather also disrupted travel in the country.