Oil steadied after its biggest two-day gain in three months as a sustained risk-on mood in wider markets outweighed signs of further stockpile growth in the US.
West Texas Intermediate traded near USD82 a barrel after rising by about 4% over the past two sessions, while Brent closed above USD85. The S&P 500 rose to another record on Tuesday, and the optimism is spilling over into other risk assets like oil.
The American Petroleum Institute, meanwhile, reported US crude inventories rose by 2.3 million barrels last week, according to people familiar with the figures. If confirmed by official data later this week, that would be the third increase in a row. Stockpiles at the Cushing, Oklahoma, storage hub also expanded, according to the API.
Oil has recovered from a loss at the beginning of the month, when OPEC+ said it would bring barrels back to the market, with the group clarifying that such a plan was conditional. On the demand side in Asia, refiners are restoring some capacity following maintenance, boosting crude consumption.
Full-day trading volumes in oil futures are also likely to be lower on Wednesday because of a holiday in the US. – Bloomberg
