As summer approaches, attention on oil market trends intensifies, with traders closely monitoring potential demand surges against robust supply levels. On Tuesday, despite expectations for a seasonal boost, oil prices remained largely stable, with benchmark Brent crude futures slightly down by 16 cents to $84.09 per barrel early in the day.
West Texas Intermediate crude futures also mirrored this trend, dropping 15 cents to $80.18 a barrel. Despite minor dips, both benchmarks had surged around 2% on Monday, achieving their highest levels since April, reflecting short-lived optimism influenced by seasonal demand expectations.
The market is now refocusing on fundamental factors such as global crude inventories and refined product storage, particularly in the U.S. and Singapore, which remain high, suggesting a surplus that could dampen price rallies.
Moreover, while global oil demand growth has slowed, dropping to 890,000 barrels per day year-on-year in the first quarter with further deceleration expected, upcoming U.S. crude inventory data could signal a shift. Analysts anticipate a decrease of 2.3 million barrels, potentially marking the start of the summer driving season's impact on demand.
This week, all eyes are on U.S. inventory data, which could either confirm or refute optimism about demand recovery. Simultaneously, OPEC+ decisions on supply cuts and their unchanged demand growth outlook highlight the complex interplay of factors that define current oil market trends.
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