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

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(Bloomberg) — The price of oil rose alongside stocks as traders awaited weekly data on U.S. crude inventories.

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WTI crude oil traded near $82 per barrel after trading volume dropped yesterday due to the Juneteenth holiday in the US. Crude oil continues to recover from recent lows as stock markets rise and algorithmic traders shift from short to long bets.

The US Energy Information Administration’s supply report scheduled for release later Thursday, a day later than normally scheduled, has the potential to change the momentum. An industry report published earlier this week pointed to another increase in inventories. The July contract for WTI also expires on Thursday, which could increase price volatility during the session.

Oil has tracked other assets recently, including stocks, but the futures curve has also provided near-term signs of a stronger market. Crude oil’s recent advance helped push Brent’s implied volatility to a six-year low.

Crude oil remains on track for monthly gains after OPEC+ extended supply cuts and said any subsequent plan to return barrels would depend on market conditions. Traders are also tracking demand expectations, as refineries in Asia have regained some capacity after maintenance despite weak margins.

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

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