Crude oil futures rangebound in Asia trade as market awaits fresh drivers

Singapore — 0143 GMT: Crude oil futures were rangebound in mid-morning trade in Asia June 24 as the market awaits fresh drivers.

At 09:43 am Singapore time (0143 GMT), ICE Brent August crude futures were down 6 cents/b (0.14%) from the June 23 settle at $42.57/b, while the NYMEX August light sweet crude contract was 8 cents/b (0.20%) lower at $40.29/b.

"We expect crude oil prices to consolidate from $37-$43/b in the short term as the market awaits further developments to determine its next direction," OCBC analysts said in a June 24 note.

"Brent failed to close above the resistance of $43.40/b yesterday, retreating to $42.63/b after private estimates suggested US crude oil inventories may climb again this week from the current record high," the analysts said.

Signs global oversupply was easing due to recent OPEC+ efforts have provided a floor to prices, but an increase in COVID-19 cases has threatened demand recovery.

Latest developments in US-China trade tensions have also kept sentiment cautious.

"Brent crude was under pressure earlier in the session amid fears it could hinder the economic recovery. However, comments from US President Donald Trump that the deal remained intact seemed to calm nerves," ANZ analysts said in a June 24 note.

Earlier in the week, Fox News reported that White House Trade and Manufacturing Policy Director Peter Navarro said that Trump had decided to terminate the trade agreement. Trump subsequently tweeted June 23 that "the China Trade Deal is fully intact".

Meanwhile, COVID-19 outbreaks continued to cap recovery optimism amid the emergence of new clusters in the US and Beijing. South Korea has also announced a second wave of coronavirus, according to media reports.