Brent Close To Weekly High, +2.5% Firmer For The Week

Brent crude has tracked modestly higher in recent dealings, last near $76.80/bbl, +0.38% for the session so far. Earlier lows sub $76.40/bbl were supported, but tight ranges have prevailed so far today. At this stage, Brent is tracking slightly better than +2.5% firmer for the week, which would be the 2nd straight weekly gain. WTI was last just above $72/bbl, following a similar trajectory to Brent so far today.

• Oil's rise this week is offering tentative signs that recent OPEC+ supply cuts, led by Saudi Arabia, are starting to have an impact. Prompt spreads have moved out of a contango structure, which is lowering over-supply fears. Lower US crude stockpiles has also helped sentiment at the margin.
• Some Asia and EU oil buyers are looking to reduce oil volumes for August after Saudi Arabia raised prices, per Bloomberg reports. This is not necessarily a sign of weak demand though, as these buyers may go to the spot market to meet any short fall.
• For Brent, resistance at $77.25 (Jun 21 high) is not too far away, while the 100-day EMA is just under $78.40/bbl. The 20-day EMA sits back around the $75.40/bbl region.
• Looking ahead, the US EIA releases its Short-Term Energy Outlook next Tuesday, while the IEA and OPEC publish their respective Oil Market Reports on Thursday.