Oil is set for consecutive weekly gains as a surprise draw in US inventory levels and strong demand signaled buoyant conditions in the world's top oil consumer, with West Texas Intermediate trading above $81 a barrel and Brent near $86. Despite an expected increase, crude stockpiles fell by 2.2 million barrels, and the consumption of petrol, diesel, and jet fuel showed improvement, leading to a sharp price recovery this month, although futures now appear overbought.
At 11:30am, the S&P/ASX 200 is 0.03 per cent lower at 7,766.80.
The SPI futures are pointing to a fall of 11 points.
Best and worst performers
The best-performing sector is Energy, up 0.83 per cent. The worst-performing sector is Financials, down 0.39 per cent.
The best-performing large cap is Evolution Mining (ASX:EVN), trading 2.79 per cent higher at $3.68. It is followed by shares in Mercury NZ (ASX:MCY) and Cochlear (ASX:COH).
The worst-performing large cap is Mineral Resources (ASX:MIN), trading 6.15 per cent lower at $56.27. It is followed by shares in Pilbara Minerals (ASX:PLS) and James Hardie Industries plc (ASX:JHX).
Commodities and the dollar
Gold is trading at US$2373.90 an ounce.
Iron ore is 0.6 per cent lower at US$106.70 a tonne.
One Australian dollar is buying 66.58 US cents.
