Oil ticks up on inventory drawdown outlook, Middle East risks

Home Business Oil ticks up on inventory drawdown outlook, Middle East risks 26-06-2024 09:52 AM Ammon News - Oil prices inched up during Asian trade on Wednesday despite a surprise jump in U.S. stockpiles, driven by geopolitical risks from the Middle East conflict and forecasts of an eventual inventory drawdown during the third quarter peak demand season. Brent crude oil futures rose 41 cents, or 0.48%, to $85.42 a barrel by 0613 GMT. U.S. West Texas Intermediate crude futures gained 46 cents, or 0.57%, to $81.29 per barrel. Strength in front-month prices are also indicating strong physical demand for oil, a boon for prices in the near-term, analysts say. August Brent and WTI prices were around 80 cents a barrel higher than September prices. "Key oil market indicators are signalling that crude's rebound is reflecting a stronger underlying physical market. The backwardation in the Brent and WTI structures strengthened in recent sessions, with key timespreads across all tenors the strongest since late April," JP Morgan analysts wrote in a client note. Reuters

Home Business

Oil ticks up on inventory drawdown outlook, Middle East risks

26-06-2024 09:52 AM

Ammon News - Oil prices inched up during Asian trade on Wednesday despite a surprise jump in U.S. stockpiles, driven by geopolitical risks from the Middle East conflict and forecasts of an eventual inventory drawdown during the third quarter peak demand season.

Brent crude oil futures rose 41 cents, or 0.48%, to $85.42 a barrel by 0613 GMT. U.S. West Texas Intermediate crude futures gained 46 cents, or 0.57%, to $81.29 per barrel.

Strength in front-month prices are also indicating strong physical demand for oil, a boon for prices in the near-term, analysts say. August Brent and WTI prices were around 80 cents a barrel higher than September prices.

"Key oil market indicators are signalling that crude's rebound is reflecting a stronger underlying physical market. The backwardation in the Brent and WTI structures strengthened in recent sessions, with key timespreads across all tenors the strongest since late April," JP Morgan analysts wrote in a client note.

Reuters

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