Oil steady on lower U.S. crude stocks, cautious demand outlook

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Oil prices were little changed on Thursday, as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.

The outlook for demand China, the world's biggest crude buyer, was also unclear amid a slowing economy.

Crude prices may struggle to find a clear direction amid a mixed global demand outlook in the next few weeks, Citi analysts said in a note. Demand sees "a mixed picture with stronger gasoline and jet fuel demand, but weaker petchems and diesel," the analysts said. Brent crude prices have broken to a higher range through July, after getting stuck in a $72 to $78 range through May and June, the Citi analysts added, with support amid Saudi output cuts and geopolitical risks.

Reporting by Jeslyn Lerh in Singapore; Additional reporting by Laura Sanicola in Washington; Editing by Sonali Paul and Miral FahmyReports on oil and energy, including refineries, markets and renewable fuels. Previously worked at Euromoney Institutional Investor and CNN.

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