A Marginal Uptick In Asia

WTI and Brent futures are ~$0.40 better off at typing, consolidating above Tuesday's worst levels aided by an uptick in U.S. e-mini equity futures. Crude specific news has also been supportive, with the latest round of weekly U.S. API crude inventory figures reportedly revealing drawdowns in crude, gasoline, and distillate inventories.

• A reminder that hope surrounding the Iranian nuclear talks in Vienna pressured crude prices on Tuesday, leaving WTI & Brent futures ~$2.00 lower on the day come settlement. EU foreign policy chief Josep Borrell noted that parties to the talks were “reaching the last steps” of negotiations, although the discussions still rely on intermediaries from third party nations when it comes to facilitating U.S.-Iran communique.
• Tuesday also saw the EIA revise its 2022 U.S. shale production forecasts into positive territory i.e. projecting growth vs. ’21 levels, but this is unlikely to assuage broader fears re: tight oil markets, at least in isolation.
• WTI & Brent have breached technical support (which came in the form of their respective 4 Feb lows), with bears now switching focus to the Jan 31 low in WTI ($86.34) and the Jan 24 low in Brent ($87.05).
• U.S. EIA oil inventory data is due later Wednesday, with the median estimate of those surveyed by Platts looking for a 100K build in headline crude stocks.