Tracking Higher For The 4th Straight Week

Oil front month benchmarks have edged away from recent highs. Brent was last near $87.10/bbl, down around 0.30%, but still higher for the week. WTI was near $83.70/bbl, off around 0.20% and likewise is firmer for the week, up +2.65% at this stage. This would leave both benchmarks higher for the fourth straight week.

• Bulls still appear to ascendency from an oil market standpoint. The drop in US stockpiles earlier this week may be a sign of improving demand, with the US summer driving season in full swing. Hurricane Beryl doesn't appear as if it will impact supplies, but it is creating worries over the hurricane season.
• Broader macro trends have also favored oil, with the USD losing ground this week, while US yields have also pulled lower.
• Asian demand remains a worry though, after Aramco cut its selling prices to the region for the second straight month (see this link).
• Middle East tensions are another focus point. Israel/Hamas negotiations continue, with some signs of progress (see this BBG link).
• Levels wise for Brent, late April highs near $89/bbl may be an upside focus point. On the downside, the 20-day EMA is trend higher and last near $85.13.