Oil markets held steady as attention turned to forthcoming reports from OPEC, the IEA, and the US EIA, which are expected to provide crucial insights into global crude balances. Brent crude hovered below $87 per barrel following a sustained four-week uptrend, while West Texas Intermediate maintained levels above $83. Traders also monitored Tropical Storm Beryl’s trajectory towards Texas, prompting oil companies to adjust operations as it approached the coast.
The upcoming monthly market snapshots from OPEC, the IEA, and the US EIA are anticipated to offer clarity amid ongoing market volatility. Tropical Storm Beryl, currently positioned 135 miles east-southeast of Corpus Christi, Texas, has triggered hurricane warnings in the region, heightening concerns among energy firms.
Last week, oil prices reached their highest levels since late-April, driven by expectations of increased summer demand and declining stockpiles. Despite resistance from economic indicators in China, the world’s largest crude importer, broader market sentiments, including expectations of US interest-rate cuts, bolstered risk assets such as commodities. Money managers extended their net-long positions on Brent for a fourth consecutive week.
Key market indicators underscore a robust environment, including Brent’s prompt spread, which stood at 88 cents per barrel in backwardation—a bullish signal—compared to less than half that amount a month earlier.
On the geopolitical front, Iran’s election of reformist Masoud Pezeshkian as president signaled potential efforts to revive discussions with the US on a pivotal nuclear agreement. In France, a surprise legislative victory for the left-wing coalition and mounting pressure on Joe Biden in the US presidential race added further geopolitical dimensions to market dynamics.
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