Snapshot: Brent is holding steady near $108 after its recent rally, underpinned by IEA warnings of rapidly depleting global oil inventories due to the Iran war and persistent supply disruptions. Today’s focus shifts to the 08:30 ET PPI data release, which could impact the dollar and indirectly influence commodity prices.
- A break above $110 could signal further upside as the summer demand season approaches, with inventories already stretched.
- Risk: An unexpectedly strong PPI print could trigger a stronger dollar and renewed headwinds for Brent, despite the tighter supply backdrop.
Bias into NY: Bullish on Brent, driven by the IEA’s stark assessment of supply tightness and falling inventories. Look for a test of $110 if the PPI data doesn’t derail the current trajectory.