Brent lifts to test $83 after EIA data does reveal a draw on stockpiles

The latest weekly oil inventory data from the US EIA has just been released. The surprise build in stocks in the private inventory data last night helped to push oil prices back down later yesterday and into the Asian session today. That led to a drop in Brent to below $82 earlier this morning and hence below the 200 day moving average for the July Brent contract. The low seen was set at just above $81.70. Well, since then Brent has been on the rebound, rising above $82.75 ahead of the EIA data. As noted here earlier, that was forecast to show a draw of around 1.43 million barrels, compared to a build the prior week of 7.26 million barrels. The data has just revealed a draw 1.36 million barrels. Granted that was slightly below the draw forecast, but the oil market has immediately taken that as positive, as it did not replicate the data seen last night. Hence July Brent has lifted close to $83 again.  As noted here a few times already the resistance level at around $83.85 has been capping the topside all week. It remains to be seen if that will continue to be the case today. Brent for July delivery is currently trading at $82.80