Oil prices dip ahead of US stocks data
By 0916 GMT, Brent crude futures were down 41 cents, or 0.6%, at US$73.77 a barrel, while US West Texas Intermediate (WTI) futures fell 42 cents, or 0.6%, to US$68.95 a barrel, erasing some earlier gains
Oil prices slipped on Tuesday ahead of data shedding light on U.S. appetite for fuel during the summer driving season, with the Brent benchmark’s price structure indicating bulls are retreating.
By 0916 GMT, Brent crude futures were down 41 cents, or 0.6%, at US$73.77 a barrel, while US West Texas Intermediate (WTI) futures fell 42 cents, or 0.6%, to US$68.95 a barrel, erasing some earlier gains.
Both contracts are trading broadly in the middle of a $10 a barrel range traced since early May.
U.S. inventory data from the American Petroleum Institute industry group is due later on Tuesday, followed by government data the next day. A Reuters poll indicated U.S. inventories probably fell in the week to June 23.
Brent’s six-month backwardation – a price structure whereby sooner-loading contracts trade above later-loading ones – is hovering near lows last seen in March, indicating shrinking concern about supply crunches.
For the two-month spread , the market is in shallow contango, the opposite price structure, indicating traders are factoring in a currently slightly oversupplied market.
The oil market has shrugged off a clash between Moscow and Russian mercenary group Wagner which was averted on Saturday. Russian oil loadings have kept on schedule.
“The latest geopolitical flare-up quickly pales into insignificance compared to persistent macroeconomic considerations,” said PVM’s Tamas Varga.
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