Horizontal trend in oil

Oil prices were flat near six-week lows as investors awaited new clues on market balance, including the outlook for U.S. inventories. Global benchmark Brent crude was holding above $82 a barrel after losing more than 3% in the previous two sessions, while U.S. crude was near $78. The decline came as concerns about demand in China compounded downward pressure. The industry-funded American Petroleum Institute is due to release its weekly forecast for changes in U.S. inventories later Tuesday. Crude inventories nationwide have fallen for three weeks, reaching their lowest level since February. Crude has remained higher since the beginning of the year, helped by OPEC+ supply cuts and expectations that U.S. interest rates will likely be cut starting in September. Political risks remain front and center as investors weigh the implications of Joe Biden’s withdrawal from his candidacy for the presidency. “Continuing concerns about Chinese demand after recent weak data continue to weigh on oil. OPEC+ cuts should keep the market tightening in the current quarter, but how much will depend on how Chinese demand develops,” said Warren Patterson, head of commodity strategy at ING Groep NV in Singapore.