Free Trial

A Little Higher In Asia


WTI is ~+$1.00 and Brent is ~+$1.10, operating around the upper end of their respective ranges for Wednesday at typing.

  • Both benchmarks closed virtually unchanged on Wednesday, with familiar concerns re: demand destruction (arising from lowered global growth forecasts and China’s ongoing COVID outbreak) countering well-documented worry over tight global crude supplies.
  • Looking to China, a straightforward recovery in industrial activity seems unlikely despite a phased re-opening of factories in affected regions, with initial reports pointing to difficulties in resuming production owing to supply chain disruptions, with some factories re-entering lockdowns as well (e.g. Taiwan’s Unimicron Technology suspended production from today to Apr 27, just one day after emerging from their previous suspension on Apr 19).
  • Elsewhere, the latest round of U.S. EIA data crossed on Wednesday, showing a large, surprise drawdown in crude inventories (~8mn bbl drawdown vs WSJ median 2.2mn build) that was attributed to a surge in U.S. oil exports to over two-year highs, coming as a larger than expected drawdown in distillate stocks was observed as well. A decline in gasoline stockpiles came in largely within expectations, while Cushing hub inventories edged downwards.
  • The drawdown in crude and distillate inventories largely corroborated reports of Tuesday’s API inventory estimates of the same, while differing on gasoline and Cushing hub stockpile figures.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.