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APIs Help Crude To Form A Base

OIL
WTI & Brent sit ~$0.40 above settlement levels at typing, building on modest gains that were lodged on Tuesday, aided by sharper than expected drawdowns in headline crude and gasoline stocks in the latest round of weekly API crude inventory estimates. Elsewhere, distillate stocks saw a draw that met expectations, while stocks at the Cushing hub experienced a marginal drawdown.
  • Early USD weakness and a bid in U.S. equities/strong U.S. data supported crude on Tuesday, before USD strength pushed the benchmarks lower as we moved towards settlement time.
  • Tuesday also saw the release of the latest monthly RTRS OPEC survey, which indicated that OPEC crude output rose by ~1mn bpd in August, as "the group and allies eased record oil supply curbs as the global economy and demand began to recover from the coronavirus pandemic."
  • Finally, BSEE pointed to ~28% of U.S. Gulf oil production still being shut in following Hurricane Laura.
  • DoE inventory data headlines on Wednesday.
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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