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

Shafaq News / Brent oil futures were little changed in Asia on Thursday, hovering slightly below seven-week highs as the market weighed geopolitical developments in the Middle East in anticipation of upcoming US inventory data.

Brent for August was up 6 cents at $85.13 a barrel by 0315 GMT.

Meanwhile, U.S. West Texas Intermediate (WTI) futures for July, which expire on Thursday, were down 15 cents at $81.42 a barrel.

There was no WTI settlement on Wednesday due to a US holiday, which kept trading mostly light. The more active August contract 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 troops, backed by tanks, warplanes and drones, moved further into the town of Rafah, killing eight people, Palestinian residents and doctors 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 11:00 a.m. EDT (3:00 p.m. GMT) on Thursday.

An industry report on Tuesday showed U.S. crude oil inventories rose by 2.264 million barrels in the week ended June 14, market sources said, citing figures from the American Petroleum Institute, 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.

(Reuters)