Oil steady ahead of US inventory data

Oil prices were steady today, July 23, as investors turned their attention to supply and demand prospects and US inventory data, overlooking domestic political developments in the US. 

Brent crude was trading at $82.34 per barrel at 08:44 am Makkah time. West Texas Intermediate (WTI) crude fell 0.14% to $78.29 per barrel. 

Investors are focusing on the supply and demand outlook, ignoring US President Joe Biden's decision to withdraw from the upcoming elections and nominate his vice president Kamala Harris to run against Republican candidate and former President Donald Trump. 

Citigroup analysts said the reason for this is the belief that the policies of either candidate will not lead to measures that will have a significant impact on the oil and gas sector, Reuters reported.  

In a note last week, Morgan Stanley said it expects the oil market will shift to a balanced position in the fourth quarter of this year compared to the expected supply shortage during the current quarter, before a surplus in 2025 that will reduce the price of Brent crude to between $75 and $80 per barrel. 

The American Petroleum Institute's weekly estimate of oil stockpiles is due today, ahead of the official Energy Information Administration data on July 24. Forecasts are for a 2.5 million barrel draw.