The latest report brought some relief to investors as the data showed US crude inventories fell by 5.3 million barrels in the week to May 24 to 474.4 million barrels, which was a much larger drop than the 900,000-barrel fall expected. The official data from the Energy Information Administration due later today.
Brent also remains afloat as traders expect that OPEC+ group will extend production cuts, while the US sanctions against Iran and Venezuela add to supply concerns. All of this helps to partly offset the worries about the potential consequences from the US-China trade dispute.
Technically, Brent now looks neutral in the , with the $68 level in focus. The barrel needs to confirm a break above this barrier in order to target the $70 threshold again.