Oil Holds Gain on Signs Russian Crude Flows Starting to Decline
(Bloomberg) -- Brent oil steadied after rising around 2% on Tuesday on signs that Russian crude production may be finally starting to decline.
Futures in London traded near $80 a barrel, a threshold that was last breached in early May. Vessel tracking data showed shipments through Russia’s western ports in the four weeks to July 9 dropped substantially, more than four months after the OPEC+ producer was due to slash output.
A weaker dollar also provided some support to commodities as investors wait for the US consumer price index read later Wednesday for clues on the path forward for monetary tightening from the Federal Reserve. Aggressive interest-rate hikes this year have weighed on the energy demand outlook.

Oil remains marginally lower this year, but OPEC+ heavyweights Saudi Arabia and Russia have pledged supply cuts to prop up prices. The global market is expected to tighten in the second half and stockpiles are forecast to draw through 2024, according to an Energy Information Administration report.
“A break above the key $80 level ahead may pave the way for a retest of its year-to-date high,” said Yeap Jun Rong, a market strategist for IG Asia Pte. Global benchmark Brent momentarily breached $89 a barrel in late January.
The EIA will release its weekly report on US crude stockpiles later Wednesday. The industry-funded American Petroleum Institute reported inventories rose by 3 million barrels last week, according to people familiar with the data. Traders will also be watching monthly reports on Thursday from the International Energy Agency and OPEC for snapshots of the global oil market.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news

Oil Steadies as Trump’s Reciprocal Tariffs Add to Trade Tensions

Isuzu to Build Car Plant in South Carolina as Trump Tariffs Loom

SoftBank Weighs Debt-Heavy Financing in $500 Billion AI Push

Stocks Climb as Traders Brush Aside Tariff Threats: Markets Wrap

Moove Works to Control Fire Within Complex in Rio de Janeiro

Stocks Slide as Tariff Angst Adds to Price Worries: Markets Wrap

China’s Oil Teapots Cut Runs to Pandemic Levels After Sanctions

China Refiners Set to Resell US Oil Cargoes After Tariff Blitz

Shell starts up new facility in UK North Sea, restoring production from the Penguins field
