Oil steady on Monday

Oil steadied after four weeks of gains, with Brent holding above $86 a barrel and West Texas Intermediate (WTI) around $83. This stability comes amid concerns over Storm Beryl approaching the Texan coast and wildfires in Alberta threatening supply.

Warren Patterson from ING Groep NV noted that while Beryl risks offshore production, the main worry is its potential impact on refinery infrastructure, which could affect crude oil and refined products differently.

Despite signs of weakness in China, expectations for US interest-rate cuts have supported risk assets, including oil. Money managers increased net-long positions on Brent for the fourth week, and metrics like Brent’s prompt spread indicate a strong market.

Upcoming reports from OPEC+, the International Energy Agency (IEA), and the US Energy Information Administration will provide insights into global crude balances.

Attribution: Bloomberg