Oil extends gains over cautious trading on lower US crude stocks; Brent near $80/bbl

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WTI crude was 35 cents, or 0.5 per cent, higher at $75.64.  Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a August 21 expiry, were last trading lower by 0.05 per cent at ₹6,203 per bbl, having swung between ₹6,126 and ₹6,254  per bbl during the session so far, compared to their previous close of ₹6,206 per bbl. Brent crude prices have broken through to a higher range this month, after being stuck at $72-$78 in May and June, according to Citi analysts, after Saudi output cuts and geopolitical risks supported demand.  -Oil prices fell in the previous session after data showed US inventories fell less than analysts expected.

US crude oil stock in the Strategic Petroleum Reserve (SPR) rose by around 1,000 barrels last week, the first increase since January 2021, according to Energy Information Administration (EIA) data. -The Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) have said that China's demand is expected to continue to rise in the second half of this year and remain the main driver of global growth.

-IEA said that the crude oil demand is set to hit a record high this year but slightly less than anticipated. Demand is expected to reach 102.1 million barrels per day, the IEA lowered its forecast for growth of the first time this year, by 220,000 bpd, to 2.2 million bpd.

-Crude prices may struggle to find a clear direction given a mixed global demand outlook in the next few weeks, Citi analysts said in a note. Demand is "a mixed picture with stronger gasoline and jet fuel demand, but weaker petchems and diesel," the analysts told news agency Reuters.

‘’Extended dip below 6,140 may weaken the prices. Whereas, a rebound above 6,240 may