Oil Prices Slide as Weaker Demand Prospects Counter Middle East Supply Concerns

Oil prices retreated on Thursday as investors weighed concerns about weaker global demand this year against supply disruptions in the Middle East. Brent futures fell by 11 cents, or 0.12%, to $88.87 a barrel, while US West Texas Intermediate (WTI) crude dropped 16 cents, or 0.19%, to $83.11.

The market's advance over the past several sessions has triggered periods of volatility and profit-taking, according to Antonio Di Giacomo, a senior market analyst at XS.com. 'Buyers continue to dominate in the short term, following the recovery over the past several sessions,' he said.

However, potential supply constraints from Middle East disruptions may not be enough to offset possible moderation in global consumption, Di Giacomo added. The market is particularly sensitive to both geopolitical developments and new economic and energy data.