(Bloomberg) — Oil rose, propelled by equities’ recent rally and a drawdown in US crude inventories.
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West Texas Intermediate’s more-active August contract advanced as much as 1% to top $81 a barrel, touching fresh intraday highs after government data showed US oil stockpiles declining by 2.55 million barrels. An industry report on Tuesday had projected a 2.26 million-barrel increase.
Oil has tracked other assets of late, including equities, but the futures curve has also provided near-term signs of a stronger market. Crude’s recent advance has helped push implied volatility for Brent to a six-year low. Still, WTI’s July contract expires Thursday, which may add choppiness to prices during the session.
Crude remains on course for a monthly gain after OPEC+ extended supply cuts and said that any subsequent plan to return barrels would hinge on market conditions. Traders are also tracking the demand outlook, with refineries in Asia bringing back some capacity after maintenance despite poor margins.
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Read More: Oil Rises Amid Equity Market Rally, US Crude Stockpile Decline