WionDrive News Desk 
On Thursday, Brent oil futures remained stable, just below seven-week highs, as market participants awaited U.S. inventory data. By 0837 GMT, August Brent crude had increased by 32 cents, or 0.38%, reaching USD 85.39 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) futures for July, set to expire that day, fell by 25 cents, or 0.31%, to USD 81.32. Trading for the more active August contract rose by 10 cents, or 0.12%, settling at USD 80.81 per barrel due to no WTI settlement on Wednesday, owing to a U.S. public holiday, which led to subdued trading conditions.
Investors awaited the release of U.S. inventory data from the Energy Information Administration (EIA) later on Thursday, delayed a day because of the Juneteenth holiday on Wednesday. Earlier industry reports indicated a rise of 2.264 million barrels in U.S. crude stocks for the week ending June 14, with a decrease in gasoline inventories, according to sources citing American Petroleum Institute figures.
Initially, Brent crude futures saw slight gains on Thursday amid news of Israeli tanks moving into Gaza, heightening concerns about oil supply disruptions from the region. However, these geopolitical worries were somewhat overshadowed by expectations of an inventory build.
According to Priyanka Sachdeva, senior market analyst at Phillip Nova, the recent increase in fuel prices is bolstering refining margins. On Wednesday, the Ice gasoil futures premium over Brent crude surged to USD 20.63 per barrel, marking a two-month high.
Tamas Varga, an analyst at PVM, noted that stronger fuel refining margins are providing optimism for those anticipating improvements in demand. Additionally, investors are awaiting the Bank of England’s (BoE) interest rate decision at 1100 GMT, following steady rates from the Norwegian central bank and rate cuts by the Swiss National Bank. Higher interest rates can potentially curb economic activity and reduce oil demand by increasing borrowing costs.
