Oil trending down

Oil fell modestly as risk-off sentiment countered a decline in U.S. inventories. Brent crude traded around $88 a barrel after falling 0.5 percent on Wednesday, while U.S. crude was near $83. The decline came despite data showing that crude inventories fell by a more-than-expected 6.37 million barrels last week as refineries ramped up processing and exports increased. In broader markets, Asian stocks retreated on concerns about the U.S. technology sector, while a disappointing outlook from Meta Platforms led to declines. The Fed’s preferred inflation gauge will provide clues about the path of monetary policy later in the week. Crude has remained higher this year, helped by OPEC+ supply cuts and tensions in the Middle East, but has retreated from recent peaks above $90 a barrel as geopolitical risks in the region eased. The world’s largest oil exchange-traded fund (US Oil Fund) reported its biggest daily outflow on record, while the trend in options remains bearish. “As markets look beyond the risks of supply disruptions from geopolitical tensions, oil prices could take a cue from the cautious risk environment. Still, for now, the uptrend from the beginning of the year continues,” said Yeap Jun Rong, chief market strategist at IG Asia Pte.