Oil prices steadied ahead of weekly U.S. inventory data, which could show another build in nationwide crude inventories.
Brent crude was little changed, holding near $85 a barrel after a thin trading session due to a U.S. holiday, while West Texas Intermediate crude rose above $81. The U.S. Energy Information Administration will release its report later on Thursday, a day later than usual, as an industry report pointed to a build in inventories.
In the absence of any other drivers, futures have been tracking the broader equity markets lately, and equity markets are finally starting to lose some steam. Tepid crude trading has helped push Brent’s implied volatility to a six-year low.
Oil remains on track for a monthly gain after the OPEC+ alliance extended output cuts and said any subsequent plan to bring back barrels would depend on market conditions. Traders are also tracking the demand outlook as refineries in Asia have restored some capacity after maintenance despite weak refining margins.
