The Sep Brent futures contract strengthened this evening, climbing from $83.70/bbl at 11:20 BST to $85.10/bbl at 17:35 BST (time of writing). This strength comes alongside an EIA-reported draw of 4.87mb in US crude oil inventories, against median estimates of a 1.08mb draw in the week ending 12 July. Despite this bullish announcement, sentiment may continue to find pressure amid significant builds announced in refined oil products. US gasoline inventories saw a build of 3.328mb against median estimates of a 1.23mb draw, while US distillate fuel oil stocks increased by 3.454mb against an expected 200kb build. Gold spot prices hit a record high of $2,469.66/oz on 16 July, possibly due to speculation of an interest rate cut by the US Fed in the near term. In the UK, a survey conducted by Citi and YouGov showed that public expectations for inflation for the year ahead declined to 2.6% in June, their lowest level since March 2020 (prev: 3.1%). This decline comes ahead of the Bank of England’s interest rate meeting next month. US factory output increased by 0.4% in June (Reuters poll: 0.2%, prev: 1.0%). However, US single-family homebuilding plummeted by 2.2% in June to an eight-month low of 980,000 units. Finally, at the time of writing, the front-month and six-month Brent futures spreads stand at $1.10/bbl and $4.20/bbl, respectively
