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Oil Holds Modest Loss as Risk-Off Tone Counters Lower Stockpiles - BLOOMBERG
, Bloomberg News
(Bloomberg) -- Oil was little changed near $88 a barrel, aided by a bigger-than-expected drawdown in US stockpiles as well as a modestly lower dollar.
Brent crude added as much as 0.5%, having stabilized between $85 and $90 after a recent bout of geopolitical volatility. The dollar dipped, making commodities priced in the currency more appealing. US crude inventories fell by 6.37 million barrels last week as refineries ramped up processing and exports soared.
Crude remains higher this year, aided by supply curbs from OPEC+ and tensions in the Middle East, although prices have pulled back from recent highs above $90 a barrel as geopolitical risks eased. Options skews remain in a bearish tilt toward puts, while the world’s biggest oil exchange-traded fund — the US Oil Fund — posted its largest daily outflow on record.
“Oil markets are still trying to find an equilibrium price due to the lack of geopolitical headlines and data releases,” said Keshav Lohiya, founder of consultant Oilytics.
The demand outlook also remains clouded, with a weakness in some refined products. Profit margins for turning crude into diesel in Asia was near the lowest level in nearly a year.
