New York, NY – Oil prices stabilized as investors awaited the release of the latest weekly inventory data from the United States, which is expected to show another increase in crude stockpiles across the nation.
Brent crude hovered around $85 per barrel, while West Texas Intermediate traded above $81, experiencing a calm trading session due to a US national holiday. The US Energy Information Administration is set to publish the inventory snapshot on Thursday, a day later than usual, following an industry report indicating a rise in inventories.
With limited driving forces at play, oil futures have been closely tied to broader equity market movements, which are now showing signs of slowing down. Consequently, implied volatility for Brent has reached a six-year low amid lackluster trading activity.
Despite the sluggish market movements, oil is poised for a monthly gain following OPEC+’s decision to extend supply cuts. The group emphasized that further adjustments to production levels will depend on prevailing market conditions. Traders are also monitoring the demand outlook, noting that Asian refineries are gradually resuming operations after maintenance, despite facing challenges due to poor profit margins.
This follows a period of uncertainty in the oil market, marked by fluctuations in prices and demand dynamics. Amidst these developments, market participants are keenly observing how factors such as geopolitical tensions and economic indicators will impact oil prices in the near future.
Overall, the oil market remains cautiously optimistic, with both buyers and sellers closely watching for any signs of potential shifts in supply and demand dynamics. As global economic conditions continue to evolve, the oil market is likely to see further volatility in the coming weeks.