Brent Holds Above $103/B On Drop In US Stocks

Published on Wednesday, 05 Jun 12:45 pm

Brent crude futures held above $103/B on Wednesday, supported by an improved outlook for demand after South Korea boosted incentives for non-Middle East oil imports and data showed a surprise fall in US crude stockpiles. Investors are also keeping an eye on the dollar, wary of any disappointment in a trio of US job reports. Swings in the US currency have roiled commodity prices in recent weeks, as investors have see-sawed on the chances of the Federal Reserve rolling back its monetary stimulus. Brent crude gained 6 cents to $103.30/B, after settling up $1.18 in the previous session. US oil rose 34 cents to $93.65/B. "Overall, oil markets will remain largely choppy as investors try and gauge if stimulus measures from the US Fed will continue or not," said Ben Le Brun, an analyst at OptionsXpress in Sydney. Mr le Brun expects uncertainty over demand growth and monetary stimulus, plus ample supplies, to keep Brent trading between $101 and $105/B, while the US contract will stay between $92 and $94 (Reuters).

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