Oil is above $82 as traders await new US inventory data

(Bloomberg) — Oil rose along with stocks as traders await weekly data on U.S. crude inventories.

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West Texas Intermediate was trading around $82 a barrel after yesterday’s low trading volumes due to the Juneteenth holiday in the US. Crude oil has continued to recover from recent lows as stock markets recover and algorithmic traders switch from short to long bets.

The U.S. Energy Information Administration’s supply snapshot, which will be released later Thursday, a day later than usually scheduled, has the potential to change the momentum. An industry report published earlier this week signaled another surge in inventories. WTI’s July contract also expires on Thursday, which could add volatility to prices during the session.

Oil has also followed other assets lately, including stocks, but the futures curve has also shown signs of a stronger market in the near term. Crude’s recent rally has helped push Brent implied volatility to a six-year low.

Crude oil remains on track for a monthly gain after OPEC+ extended supply cuts and said any subsequent plan to return barrels would depend on market conditions. Traders are also monitoring demand prospects, with refineries in Asia reducing some capacity after maintenance despite poor margins.

“Today we are waiting for the inventory data,” said Arne Lohmann Rasmussen, head of research at A/S Global Risk Management. “After the API data, the market is primed for a build, so I think there is room for a positive surprise here.”

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