Oil maintains gains

Oil held on to gains on news that Russian crude production is starting to ease. Brent crude oil prices held firm this morning after gaining 2% on Tuesday on signs that Russian crude production is starting to ease. Futures in London traded near the $80 level, which broke lower in early May. Ship-tracking data showed shipments through Russia’s western ports fell significantly in the four weeks to July 9, four months after the OPEC+ member cut production. The dollar’s decline ahead of U.S. inflation data today also helped boost commodity prices, including oil. Oil remains marginally weaker this year, but Saudi Arabia and Russia have pledged to cut supply to support prices. The global market is expected to contract in the second half, with inventories expected to last into 2024, the Energy Information Administration (EIA) said. “A break above the key $80 level ahead could pave the way for a retest of the year-to-date high,” said Yeap Jun Rong, chief market strategist at IG Asia Pte. The EIA is due to release its weekly report on U.S. crude inventories later on Wednesday. The industry-funded American Petroleum Institute reported that inventories rose by 3 million barrels last week, according to people familiar with the data. Investors will also be watching monthly reports from the International Energy Agency and OPEC on Thursday.