Oil drops ahead of the release of US inventory data

Oil prices fell on Tuesday ahead of data that will shed light on Americans’ appetite for fuel during the summer driving season, with the price structure of benchmark Brent crude signaling that the bulls are retreating.

And by 0916 GMT, Brent crude futures fell 41 cents, or 0.6 percent, to $ 73.77 a barrel, and US West Texas Intermediate crude futures fell 42 cents, or 0.6 percent, to $ 68.95 a barrel.

The American Petroleum Institute is due to release data on US inventories later on Tuesday, followed by data from the government Energy Information Administration on Wednesday. A Reuters poll indicated that US inventories may have fallen in the week ending June 23.

On Saturday, a clash was avoided between Moscow and the Russian private military group, Wagner, as the group’s heavily armed fighters withdrew from the southern Russian city of Rostov under an agreement that halted their rapid advance towards the capital.

Lower supply is already in the minds of investors due to Saudi Arabia’s pledge to cut production from July.