A Touch Softer In Asia

Oil traded defensively during Asia-Pac hours, with WTI & Brent crude futures running ~$0.50 below their respective settlement levels at typing, off worst levels of Asia dealing.

• Wider risk generally traded on the defensive during Asia-Pac hours, with the NASDAQ 100 leading the U.S. e-mini complex lower in the wake of soft earnings guidance from a U.S. tech name. The soft tone for wider risk assets ultimately weighed on crude.
• A resultant, modest uptick in the DXY would also have applied some pressure to oil.
• Focus continues to fall on EU strategy re: Russian oil exports, with Dutch PM Rutte flagging the potential for agreement on the matter during the next week, while the German Economy Minister pointed to an agreement “within days,” while noting the potential for oil price caps on Russian exports (a method that has been touted as an alternative to a blanket embargo).
• Elsewhere, Beijing’s new COVID case count moderated from the levels observed yesterday, but this failed to provide any real impetus for oil.
• Weekly U.S. API inventory estimates will cross after hours on Tuesday.