(Bloomberg) -- Oil drifted higher in tandem with equities as traders await weekly data on US crude inventories.
West Texas Intermediate traded near $82 a barrel after yesterday's low-volume trading due to the Juneteenth holiday in the US. Crude has continued to recover from recent lows as equity markets rally and algorithmic traders switch from short to long bets.
The US Energy Information Administration's supply snapshot due to be released later Thursday, one day after it's usually scheduled, has the potential to shift momentum. An industry report published earlier this week signaled another increase in stockpiles. WTI's July contract also expires Thursday, which may add volatility to prices during the session.
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.
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.
“Today we are waiting for the inventory data,” said Arne Lohmann Rasmussen, head of research at A/S Global Risk Management. “After the API data, the market is prepared for a build, so I guess there is room for a positive surprise here.”
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