Brent crude holds stable ahead of US stockpile data release

Oil prices held stable on Thursday ahead of release of official data on US stockpiles and after initial estimates indicated an increase in stocks last week, indicating a decline in demand for crude oil amid the ongoing coronavirus pandemic.

Brent crude futures contract for November was trading at $40.79 a barrel, at 8.55 am Makkah time.

US West Texas Intermediate crude, meanwhile, was slightly lower by 0.1% at $38 a barrel.

Data from the American Petroleum Institute, released Wednesday, showed an increase in US stockpiles by 3 million barrels in the week to Sept.4, Reuters reported.

Energy Information Administration’s statistics on US stockpiles is expected to be released later today.

If EIA indicates a rise in stockpiles, it would be the first US stock build since mid-July, Reuters reported, citing ING analysts.