Oil settles lower but Brent holds above $86

Oil drilling rigs

Oil pared gains today, July 2, to close lower amid profit-taking as investors sought to benefit from the rise in prices to the highest levels in two months.

Brent crude futures for September delivery (the most active) fell by 0.4%, or 36 cents, to $86.24 a barrel, after rising to $87.46.

WTI crude for August delivery fell by 0.7%, or 57 cents, to record $82.81 per barrel, after touching $84.38.

According to OPEC's annual statistical bulletin, global oil demand grew by 2.6% year-on-year, reaching an average of 102.21 million barrels per day in 2023, exceeding the pre-pandemic annual average.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to release official inventory data on July 3, amid expectations of a 400,000-barrel drop in crude inventories.