Oil Steady After API Reports Stockpile Build, Global Supply Uncertainties Remain
Oil prices have stabilized after a series of modest gains, as an industry report indicates a further increase in U.S. crude inventories. However, global supply concerns persist, adding uncertainty to the market.
Key Takeaways:
* Brent crude dipped below $76 a barrel, ending a three-day rally.
* West Texas Intermediate (WTI) remains around $72.
* The American Petroleum Institute (API) reported a 3.3 million-barrel rise in U.S. commercial inventories last week, pending confirmation by official data later on Thursday.
* Crude prices have been buoyed this week by concerns over tighter supply, with OPEC+ likely to delay production increases, Kazakhstan's exports disrupted by a drone strike, and the G7 considering a stricter price cap on Russian oil.
* Trading has calmed after a volatile start to the year, with volatility gauges indicating market indifference to President Trump's policy changes.
* Exports from Iraq's Kurdistan region could resume this week, although Turkey has not yet confirmed.
* President Trump's comments calling Ukraine's President Zelenskiy a dictator raise concerns about the impact on sanctioned Russian barrels in any peace agreement.
* "Uncertainty prevails in the oil market, with no clear direction amid supply unknowns and Trump's policy stances," said analyst Sean Lim of RHB Investment Bank Bhd. RHB projects Brent to average $75 a barrel this year.