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Oil Holds Decline After Industry Report Points to Stockpile Gain - BLOOMBERG
, Bloomberg News
(Bloomberg) -- Oil rose as traders turned their attention to US inventories data due later today.
Global benchmark Brent headed toward the $86-a-barrel marker, after dropping 1.2% Tuesday, while West Texas Intermediate traded beyond $81. A Bloomberg survey of analysts’ estimates indicated a decline in US crude inventories when figures from the Energy Information Administration are released later. That’s in contrast to the American Petroleum Institute, which reported a modest increase last week, according to people familiar with the figures.
“The ubiquitous view is that demand will increase during the summer and with OPEC+ cuts fully in place until October, global and OECD stocks ought to deplete,” Tamas Varga, an analyst at brokerage PVM, said in a report. While “convincing stock draws in the US would go a long way to bolster this optimism,” the API figures were “inauspicious,” he cautioned.
Oil has risen from early June, after the Saudi energy minister underlined that OPEC+’s recent deal retains the option to pause or reverse production changes, and amid ongoing conflicts in the Middle East and Ukraine. Later this week, traders will be watching US inflation data for clues on the path forward for interest rates.
The prompt spread for Brent futures narrowed to its smallest backwardation in more than a week, suggesting a degree of market softness.
