WTI crude oil and Brent oil are cautiously higher ahead of today’s US oil inventories report.
The official weekly report from the Energy Information Administration is expected to show a drop of nearly 2 million barrels.
But data yesterday from the American Petroleum Institute stunned markets with a surprise 8.1 million barrel build. Like the upcoming EIA data, forecasts had been for a draw of 2 million barrels.
WTI crude oil futures contracts for delivery in August have been range bound since the middle of May, with $32 providing support and resistance at $35 keeping a ceiling on rallies.
Traders have struggled to find direction: on the one hand, the reopening of global economies will help stimulate demand, but on the other, the world remains awash with excess supply.
Sentiment had already taken a hit yesterday even before the API data, as reports cast doubt over Russia’s commitment to OPEC+ production cuts.
Tensions between the US and China over a new security law for Hong Kong is also weighing on risk-appetite, although so far today oil has continued to find bid.
The API data saw crude oil prices fall over $2 per barrel, while Brent was off over $1.50. If the EIA data confirms that inventories rose again last week, today’s gains could quickly turn to losses.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
VAPE Stock Soars 600%: CEA Industries, known by its ticker symbol VAPE, has recently seen a remarkable surge in its stock price, soaring by 600%.
DJT Stock Dips: Trump Media & Technology Group (TMTG) has become a focal point in the media landscape, especially with the launch of its social media platform, Truth Social.
Trending Stocks Today: in the ever-evolving landscape of financial markets, certain stocks catch the attention of market participants due to their innovative approaches and strategic developments.
set cookie