Brent stable as the eyes of the Middle East market war turmoil, US inventory data

UPDATE 1-Brent steady as Middle East war rages, US inventory data

Reformulate, update prices, add comments

By Laila Kearney and Jeslyn Lerh

SINGAPORE, June 20 (Reuters) –Brent crude futures were little changed in Asia on Thursday, hovering slightly below seven-week highs as the market weighed geopolitical developments in the Middle East ahead of upcoming US inventory data.

August Brent LCOc1 rose 6 cents to $85.13 a barrel by 0315 GMT.

Meanwhile, US West Texas Intermediate futures (WTI) for July CLc1which expires Thursday, fell 15 cents to $81.42 a barrel.

There was no WTI settlement on Wednesday due to a US holiday, which kept trading mostly light. The most active contract since August CLc2 fell 17 cents to $80.54 a barrel.

Brent crude futures rose in early trade on Thursday as the market digested news of an Israeli tank advance into Gaza.

Israeli troopsbacked by tanks, warplanes and drones, moved further into the town of Rafah, killing eight people, Palestinian residents and medics said.

“Markets are anticipating an escalation of the Gaza crisis to affect oil supplies in the key producing region,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

However, concerns about inventory build-up appear to be overshadowing fears of escalating geopolitical stress for now, Sachdeva said.

WTI crude slipped ahead of the US government’s oil stockpile report, which was delayed by a day due to the national holiday.

The Energy Information Administration is due to release last week’s oil inventory data at 11 a.m. EDT (1500 GMT) on Thursday.

An industry report released Tuesday showed US crude oil stocks rose 2.264 million barrels in the week ended June 14, market sources said, citing American Petroleum Institute figures, while gasoline stocks fell.

“The EIA’s weekly oil inventory report will be scrutinized for any signs of weak demand,” ANZ Research analysts said on Thursday.

Reporting by Laila Kearney in New York and Jeslyn Lerh in Singapore; Editing by Sonali Paul and Miral Fahmy