Oil Pares Gains as Sentiment Falters, Ignoring Stockpile Drop

Oil pared gains alongside broader equity markets as traders largely ignored a US stockpile report that signaled tighter markets.

(Bloomberg) — Oil pared gains alongside broader equity markets as traders largely ignored a US stockpile report that signaled tighter markets.

Crude has continued to follow the whims of the broader market, with its advance fading to near $76 a barrel after earlier approaching $77 a barrel. The move came even as a US report showed inventories at the Cushing hub fell the most since October 2021 last week. Nationwide stockpiles slid 709,000 barrels, which traders say isn’t bullish enough to push prices higher in the face of a stronger dollar.

Russia’s crude shipments fell to a six-month low in the four weeks to July 16. The curbs suggest Moscow is fulfilling a pledge with its partners in the OPEC+ coalition to rein in supplies. Russia said it aims to reduce its third-quarter crude export plans by 2.1 million tons, in line with its previously stated pledge to cut overseas shipments by 500,000 barrels a day in August.

Oil has been buffeted in recent months as investors weigh China’s stuttering recovery against supply cuts by OPEC+ heavyweights Saudi Arabia and Russia, and indications that the Federal Reserve may be close to concluding a cycle of interest-rate hikes. Prices have made a decisive break higher since late June on signs the market may finally be tightening, but are still lower for the year.

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–With assistance from Elizabeth Low and Sharon Cho.

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