In Asia on Thursday, Brent oil futures held steady just below a seven-week peak, as market attention divided between geopolitical tensions in the Middle East and the upcoming U.S. inventory data.
By 0315 GMT, August Brent inched up 6 cents to $85.13 per barrel. Concurrently, U.S. West Texas Intermediate (WTI) futures for July, expiring Thursday, dropped 15 cents to $81.42 per barrel. Trading for the more active August contract fell 17 cents to $80.54 per barrel after a U.S. holiday led to subdued trading and no WTI settlement on Wednesday.
Early trading saw Brent crude slightly higher, with news of Israeli military actions in Gaza influencing market sentiment. Israeli forces, including tanks and aircraft, advanced into Rafah, resulting in casualties, according to residents and Palestinian medics.
Priyanka Sachdeva, senior market analyst at Phillip Nova, noted, "Markets are concerned that the Gaza conflict could disrupt oil supplies from this critical region." However, fears over potential inventory builds currently outweigh immediate geopolitical tensions, Sachdeva added.
Ahead of the delayed U.S. government oil inventories report, WTI crude prices slipped. The Energy Information Administration (EIA) is set to release data on last week's oil stocks at 11 a.m. EDT (1500 GMT) on Thursday. Earlier reports from the American Petroleum Institute indicated a 2.264 million barrel increase in U.S. crude stocks for the week ended June 14, alongside a decrease in gasoline inventories.
"Market watchers will scrutinize the EIA's report for indications of weakening demand," ANZ Research analysts commented on Thursday.
Paraphrasing text from "Reuters" all rights reserved by the original author.
