OIL: Brent Builds On Thursday Gains, But Still Tracking Lower For The Week

Brent crude has drifted higher in the first part of Friday trade. We were last at $74.70/75/bbl, which is 0.60% above Thursday closing levels. This comes after Thursday's 2.23% gain, amid broadly stronger risk appetite in the equity space and a weaker USD. Still, we are tracking lower for the week, off nearly 3% at this stage. WTI is back to $70.50/bbl, following a similar trajectory.

• For Brent, recent lows come in near $71.40/bbl, while on the topside, the simple 50-day MA sits close to $78.85/bbl.
• Crude’s gains come ahead of this weekend's OPEC+ meeting which many analysts thought would lean more heavily towards extending cuts if Brent goes sub-$70/bbl this week – a move now looking less likely.
• EIA weekly data showed a 4.5mn bbl increase in crude stocks – which were supported by a net 1mn bbl increase in imports. Gasoline stocks saw a small decline while implied demand on a four-week average reached 9.2mn bpd - the highest four-week average since late 2021 and on a seasonal basis since 2019. This still points to a challening supply backdrop for oil bulls.