Oil rises amid declining US inventories, but demand concerns remain

(Quotations updated, added quote in 3 paragraphs, details)

LONDON, Jul 20 (Reuters) –

Oil prices rose on Thursday amid a drop in U.S. crude inventories, although the fall was smaller than expected. At the same time, the deterioration of demand forecasts forced investors to be cautious.

Brent crude oil futures up 0.57% to $79.91 a barrel through 4:19 p.m. Moscow time, WTI 0.66% to $75.85 a barrel.

“Yesterday’s US Energy Information Administration report on oil inventories turned out to be somewhat of a disappointment for those looking for inspiration,” PVM analysts say.

US crude inventories fell by 708,000 barrels in the week ending July 14 to 457.42 million barrels.

The Organization of the Petroleum Exporting Countries and the International Energy Agency said demand from China is expected to pick up further in the second half of the year and remain the main driver of global growth.

China’s imports of Russian oil in June broke historic records, Chinese customs data showed on Thursday, even though Urals’s discount to international benchmarks

shrinking

.

Crude oil prices may not find a clear direction over the next few weeks amid mixed global demand outlook, Citi analysts said in a note.

According to Citi, demand for petroleum products is mixed, with demand for gasoline and jet fuel increasing, and demand for diesel fuel declining.

The original message in English is available at the code: (Ahmad Ghaddar featuring Jeslyn Lerch in Singapore and Laura Sanicola in Washington)