(Bloomberg) -- Oil steadied after a three-day drop as an industry estimate pointed to another decline in U.S. crude stockpiles and prices appeared to find some technical support.
Brent traded little changed near US$84 a barrel. U.S. crude stockpiles shrank by 4.4 million barrels last week, the American Petroleum Institute reported, according to people familiar with the figures. Official inventory data comes later Wednesday, and if a decline is confirmed that would make for the longest run of draws since last September.
On Tuesday, Brent found support near its 200-day moving average, helping to stem a recent decline from near $88 a barrel. The global benchmark also closed below its lower Bollinger Band for the first time since June, a sign recent drops may have become overdone.
Crude remains higher for the year after OPEC+ curbed supplies, though prices have declined from a peak earlier this month on signs of poor demand in top importer China. The country recorded its slowest growth in five quarters in the three months to June, and the International Energy Agency has cited the Asian nation’s slowdown as a big factor in weaker global oil demand growth.
“With the market balances remaining tight and prices still closely reflecting current supply and demand fundamentals, any announcement from the Third Plenum in Beijing this week is likely to shape the market sentiment,” said Svetlana Tretyakova, senior oil analyst at Rystad Energy.
With some traders still upbeat on the outlook for the rest of the year, there were a flurry of bullish oil options trades on Tuesday, wagering on price gains. Those included contracts that would profit from a rally to $100 and beyond for WTI and Brent.
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