By 0916 GMT, Brent crude futures were down 41 cents, or 0.6%, at $73.77 a barrel, while U.S. West Texas Intermediate futures fell 42 cents, or 0.6%, to $68.95 a barrel, erasing some earlier gains.U.S. inventory data from the American Petroleum Institute industry group is due later on Tuesday, followed by government data the next day. A Reuters poll indicated U.S. inventories probably fell in the week to June 23.
Brent's six-month backwardation - a price structure whereby sooner-loading contracts trade above later-loading ones - is hovering near lows last seen in March, indicating shrinking concern about supply crunches. For the two-month spread , the market is in shallow contango, the opposite price structure, indicating traders are factoring in a currently slightly oversupplied market.averted on Saturday"The latest geopolitical flare-up quickly pales into insignificance compared to persistent macroeconomic considerations," said PVM's Tamas Varga.Much depends on whether Chinese oil demand picks up in the second half.
Writes about the intersection of corporate oil and climate policy. Has reported on politics, economics, migration, nuclear diplomacy and business from Cairo, Vienna and elsewhere.