June 27, 2024 (MLN): Oil prices remained rangebound as the market awaited US economic data, seeking a catalyst to break out of the tightest trading range in over three years.
Brent traded near $85 a barrel and has swung in a narrow range of $1.76 so far this week, the smallest fluctuation since early 2021, reported Bloomberg.
Traders are watching for a range of US economic data over the next two days, including employment figures, which could set the tone for oil and broader markets.
Even an unexpectedly large build of US crude stockpiles failed to ignite stronger price moves on Wednesday, with West Texas Intermediate closing little changed.
The benchmark was below $81 a barrel on Thursday.
Oil is on track for a monthly gain and there are expectations prices will climb further over the next quarter on seasonal strength.
Futures have taken their cues from the moves of wider stock markets recently, and the outcome of upcoming elections in Iran and France could add further volatility.
“Signals on demand remain mixed, but are generally positive given summer travel and cooling demand,” said Charu Chanana, market strategist for Saxo Capital Markets Pte in Singapore.
US Gulf Coast crude inventories ballooned by 2 million barrels last week and remain at the highest since 2020 on a seasonal basis, while overall stockpiles are the biggest since April.
There are signs of lackluster fuel consumption, with measures of gasoline and jet fuel demand flagging.
