Horizontal trend in oil

Oil investors are eyeing the OPEC+ meeting and U.S. inventory data. Oil prices were steady after falling on Wednesday as investors looked to U.S. inventory data and the weekend OPEC+ meeting for more clarity on the supply and demand outlook. Global benchmark Brent crude traded around $84 a barrel after falling 0.7% in the previous session, while U.S. crude was near $79. Commodities followed bonds and stocks lower on Wednesday after a disappointing sell-off in U.S. Treasury bonds, offsetting concerns over another attack on a ship in the Red Sea. Oil has been boosted this year by geopolitical conflicts and restrictions imposed by the Organization of the Petroleum Exporting Countries and its allies. The group is likely to consider factors such as last month’s decline in prices, weaker demand outlook in China and healthy supplies from the Americas at its online meeting on Sunday. Output cuts are expected to be extended into the second half of 2024. “There is some caution in the market, with consumption slowing ahead of the high-demand summer season,” said Will Sungchil Yun, senior commodity analyst at SI Securities Corp. “But a surprise from OPEC+ cannot be completely ruled out, and that could immediately push prices higher.” The market will also look to official U.S. oil and fuel inventory data due later on Thursday for information on demand as the summer driving season begins. U.S. crude inventories fell by 6.49 million barrels last week, the biggest drop since January if confirmed by official figures, according to the American Petroleum Institute.