(Bloomberg) — Oil prices hovered near the top of a recent trading range ahead of reports expected to show U.S. crude inventories rising, weakening signs of a tightening in the physical market.
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West Texas Intermediate was little changed at around $78 a barrel. The industry-funded American Petroleum Institute reported a significant increase in U.S. inventories ahead of official U.S. government figures to be released later Thursday.
In contrast, time spreads indicate market strength, and a measure of the balance of oil supply at the U.S. futures delivery point in Cushing, Oklahoma, has also risen sharply. Both indicators have bullish patterns indicating tight supply in the short term.
The absence of a significant driver for oil means futures prices take their cues from the broader stock market, with prices influenced by the rise and fall of global stocks amid earnings reports and economic data releases. be done.
Oil prices are trading near the high end of this year's range as investors juggle the prospect of weak demand from China, its biggest importer, including heightened geopolitical risks in the Middle East and disruptions in the Red Sea. In the United States, minutes from the Federal Reserve's latest meeting show that most officials remain concerned about the risk of cutting borrowing costs too soon, potentially continuing to headwinds to energy demand. There is sex.
“Oil prices continue to build a floor above $75 WTI and $80 Brent, but the upside remains subdued for now,” said Ole Hansen, head of product strategy at Saxo Bank. “Yesterday's strong results from Nvidia boosted risk sentiment, with the dollar heading for its first weekly decline this year, which could add further support to oil and other commodities.”
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–With assistance from Yongchang Chin.
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