Oil holds ahead of US stocks as volatility eases

(Bloomberg) — Oil steadied ahead of the release of weekly U.S. inventories data, which could point to a further increase in domestic crude stockpiles.

Brent was little changed near $85 a barrel after a low-volume session due to a US holiday, while West Texas Intermediate was above $81. The US Energy Information Administration will release the snapshot later, a day after it’s usually scheduled, with an industry report signaling a gain.

Absent other factors, futures have trailed the broader equity markets of late, and stocks are finally losing steam. Flattering crude oil helped push implied volatility for Brent to a six-year low.

Oil remains on course for a monthly gain after OPEC+ extended supply cuts and said any further plans to bring back barrels would depend on market conditions. Traders are also eyeing the demand outlook, with refiners in Asia bringing back some capacity after maintenance despite weak margins.