Oil steady on Thursday

Oil prices steady as storm Beryl’s impact on Houston waned, with traders eyeing Federal Reserve Chair Jerome Powell’s testimony on monetary policy.

Brent crude was below $86 a barrel, and West Texas Intermediate (WTI) near $82. Texas is recovering, with key offline infrastructure and 85 per cent of Houston without power.

Crude prices are up year-to-date, supported by OPEC+ cuts and potential Fed interest rate reductions. Powell’s report to the Senate Banking Committee will provide future borrowing cost insights.

Summer fuel demand forecasts had boosted prices, but optimism is fading with rising US gasoline inventories and increased bearish bets. The Energy Information Administration’s Short-Term Energy Outlook is awaited.

Yeap Jun Rong from IG Asia noted Beryl’s limited impact eased prices. Investors remain cautious ahead of Powell’s testimony and US inflation data.

Brent’s nearest contracts are in backwardation, though the gap has narrowed from 88 cents to 74 cents a barrel over the past week.

Attribution: Bloomberg