Brent crude edging lower towards $86 today

On Friday Brent stalled ahead of $87. The price of the September contract fell to a low at $86.27 and later closed $0.80 lower on NYMEX exchange, at $86.54. The price action so far today has seen it drift lower, towards $86. The comments here all last week regarding the price action defying the economic backdrop and future demand outlook remain unchanged at the start of this week. The markets will surely want to see, beyond any weekly shifts in stockpiles, that the underlying demand is going to outstrip supply. Right now there is not much evidence of that. The low seen so far today has been set around $86.11. Brent for September delivery is currently trading at $86.20