Brent oil price trading static, awaits US oil inventory data

Brent oil prices are trading static on Friday, ICE Brent crude oil futures currently around $72.54, the markets await the latest set of US oil inventory data, due out later today.

“The bulls appeared emboldened by the fact that any EIA confirmation of a large crude oil stock build won’t be seen for a couple more days due to weather-related delays in reporting,” said Jim Ritterbusch, president of Ritterbusch & Associates, in a note to investors. Weekly US oil inventory and demand data will be released Friday due to the storm related shutdown of government offices in Washington, D.C., the EIA said.

Oil prices rose in volatile trading earlier this week as the US East Coast experienced its second huge snowstorm in less than a week. The US dollar rose after the US Labor Department data showed the number of people filing for initial jobless benefits fell sharply last week, reversing a recent spike that had heightened worries about labor market weakness.

The US dollar’s strength against the euro, stemming from the euro zone’s fiscal woes, was the main reason for last week’s sharp sell-off in commodities including crude oil. Since oil is priced in US dollars, any rise in the currency makes buying oil costlier, and less attractive for investors using the euro and other currencies.

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