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Oil Trades in Narrow Range After Big Build of US Stockpiles - BLOOMBERG
BY , Bloomberg News
, ICE, CME
(Bloomberg) -- Oil steadied ahead of US economic data, as the market seeks a catalyst to break out of the tightest trading range in over three years.
Brent was near $86 a barrel and has swung in a narrow range of $1.76 so far this week, the smallest fluctuation since early 2021. Traders are watching for a range of US economic data over the next two days, including employment figures, which could set the tone for oil and broader markets.
Even an unexpectedly large build of US crude stockpiles failed to ignite stronger price moves on Wednesday, with West Texas Intermediate closing little changed. The benchmark hovered around $81 a barrel on Thursday.
Oil is on track for a monthly gain and there are expectations prices will climb further over the next quarter on seasonal strength. Futures have taken their cues from the moves of wider stock markets recently, and the outcome of upcoming elections in Iran and France could add further volatility.
“The recent comeback in the oil market could be put to the test if the coming bout of US economic data surprises and challenges the notion that the Fed may start to cut rates after the summer,” said Jens Naervig Pedersen, a strategist at Danske Bank.
US Gulf Coast crude inventories ballooned by 2 million barrels last week and remain at the highest since 2020 on a seasonal basis, while overall stockpiles are the biggest since April. There are signs of lackluster fuel consumption, with measures of gasoline and jet fuel demand flagging.
