Crude Gives Up Some Gains, US Holiday Likely To Keep Volumes Thin

Oil prices are trending lower and have given up a large share of Wednesday’s gains during APAC trading today. Brent is down 0.6% to $86.85/bbl, close to the intraday low, while WTI is 0.6% lower at $83.34/bbl. The US is closed today and so volumes are likely to be light with the focus then turning to Friday’s US payroll data. The USD index is down slightly.

• Crude reached highs early in the session of $87.12 for Brent and $83.69 for WTI driven by the largest US crude inventory drawdown in almost a year and the partial evacuation of some oil platforms in the path of Hurricane Beryl. But they have trended lower since then possibly due to technical selling and continued demand concerns.
• Hurricane Beryl is currently expected to possibly impact around 73kbd of federal offshore oil output, according to the National Hurricane Center and Ocean Energy Management data.
• Later the ECB’s Lane and Cipollone speak and the minutes from the June 5-6 meeting are published. The UK election is also held. German May factory orders print.