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API Inventory Estimates & Evergrande News Support Crude

OIL

WTI and Brent futures sit ~$0.60 above their respective settlement levels, with the deeper than expected drawdown in the weekly headline crude inventory estimate from API supporting the space. News that Chinese property developer Evergrande will make a negotiated coupon payment on its onshore bond on Thursday also aided the bid, although a lack of clarity surrounding the matter and continued worry re: coupon payments on offshore bonds saw crude off of Asia-Pac highs. The larger than expected drawdown in headline crude stock estimates in the API report was accompanied by a larger than expected drawdown in distillates, a shallower than expected drawdown in gasoline stocks and a drawdown in stocks at the Cushing hub. A quick reminder that Tuesday saw crude nudge higher as U.S. equity markets rebounded from worst levels of the day. We also saw reports pointing to an uptick in OPEC+ production pact compliance during the month of August.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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