Crude Steadies As Hurricane Risks Ease

Oil prices were moderately lower on Tuesday as concerns over Hurricane Beryl affecting production in the Gulf of Mexico waned. Technicals also stalled the rally as crude oscillated around overbought. The lower US dollar provided some support earlier in the European session but it wasn’t sustained (USD index -0.2%).

• WTI fell 0.3% to $83.17/bbl after reaching a high of $84.38 followed by a low of $82.72. It has started today lower at $83.05. The benchmark remains in a bull cycle with the theme strengthened when it broke above $80.11. Initial resistance at $83.64 was breached on Tuesday and the bull trigger is at $85.27.
• Brent was little changed closing around $86.60/bbl. It rose to $87.46 before falling to $86.16. The bull trigger is at $89.32 with initial support at $83.02, 50-day EMA.
• Bloomberg reported that US crude inventories fell 9.2mn barrels last week and distillate -740k but gasoline rose 2.5mn, according to people familiar with the API data. The official EIA figures are released later today.
• Concerns remain over the early start to the hurricane season but the chance of Beryl impacting the upper Gulf of Mexico is now at 30-40%, according to Bloomberg.