Oil prices face pressure ahead of US inventory data

Global oil prices fell in European trade on Tuesday on track for the third profit in a row away from six-month highs amid active profit-taking, and ahead of initial US inventory data.

Israel withdrew its forces from Khan Yunis in Gaza, with the troop level in the zone becoming the lowest since the war started on October 7th. 

Prices

US crude fell 0.45% to $86.18 a barrel, with a session-high at $86.94. 

Brent fell 0.4% to $90.31 a barrel, with a session-high at $90.91. 

US crude lost 0.25% on Monday, the second loss in a row on active profit-taking off six-month highs at $87.59. 

Brent fell 0.35% yesterday on profit-taking off October 2023 high at $91.88. 

On average, oil prices rallied 4% last week, the fourth weekly profit in a row amid concerns about global supply disruptions. 

US Stocks 

The American Petroleum Institute is releasing data on US crude stocks later today, with inventories expected up 2.4 million barrels last week.

Cease-fire Talks 

Israel withdrew some of its troops from southern Gaza amid a new stage in the ceasefire negotiations. 

Both Israel and Hamas sent teams to Egypt to conduct new talks on a potential ceasefire ahead of the Eid Al-Fitr religious holiday. 

Oil Prices Outlook 

Goldman Sachs’ analysts expect Brent to remain below $100 a barrel, provided no new surprising geopolitical hits take place.