Oil prices remained stable as traders awaited US economic data that could potentially break the tight trading range that has been in place for over three years. Brent crude was trading near $85 a barrel, fluctuating within a narrow range of $1.76 so far this week, the smallest range since early 2021. The market is closely monitoring various US economic indicators, including employment figures, which could impact oil prices and broader financial markets.
Despite a larger-than-expected build in US crude stockpiles, oil prices remained relatively unchanged, with West Texas Intermediate closing below $81 a barrel on Thursday. Oil prices are expected to see further gains in the upcoming months due to seasonal strength, with futures taking cues from broader stock market movements. The outcomes of upcoming elections in Iran and France could introduce additional volatility to the market.
While demand signals for oil remain mixed, there is generally a positive outlook due to summer travel and cooling demand. US Gulf Coast crude inventories increased by 2 million barrels last week, reaching levels not seen since 2020 on a seasonal basis. Overall stockpiles are also at their highest since April, indicating sluggish fuel consumption with measures of gasoline and jet fuel demand showing signs of weakness.
Analysts suggest that oil prices may continue to rise in the coming months, with expectations of increased volatility in the markets. The market will closely watch upcoming economic data releases and geopolitical events for further insights into price movements.