Oil falls ahead of US data

Brent fell below $85 a barrel and has fluctuated in a narrow range of $1.76 so far this week, the smallest fluctuation since early 2021. Investors await a raft of US economic data over the next two days, including employment figures.

Even the unexpectedly large amount of crude oil stocks in the US could not cause stronger price movements on Wednesday. US crude oil was little changed, falling to $80 a barrel on Thursday.

Oil is on track for monthly gains and there are expectations that prices will rise further in the next quarter due to seasonal strength. The results of the upcoming elections in Iran and France could further increase volatility.

“Signals on demand remain mixed, but overall positive given summer travel and cooling demand,” said Charu Chanana, market strategist at Saxo Capital Markets in Singapore.

US Gulf Coast crude stocks rose by 2 million barrels last week, maintaining their highest level since 2020 on a seasonal basis, while overall inventories reached their highest level since April. There are signs that fuel consumption is lackluster, with demand for gasoline and jet fuel declining.