Building On Tuesday's Bid

WTI & Brent sit ~$0.60 above their respective settlement levels at typing, after the benchmarks added ~$1.00 on Tuesday, supported by U.S. Gulf of Mexico shut ins and a bid in equities (despite the latter somewhat faltering during the last few hours of NY trade).

• After hours Tuesday saw a surprise, deep draw in headline crude stocks in the latest round of weekly API crude estimates, alongside a surprise draw in distillate stocks, a surprise build in gasoline stocks and small draw at the Cushing hub. The deep draw in headline crude stocks has supported the space overnight.
• Elsewhere, Tuesday saw the IEA cut its forecast for 2020 oil demand growth, pointing to a "treacherous" path ahead. The Agency noted that it expects "the recovery in oil demand to decelerate markedly in the second half of 2020, with most of the easy gains already achieved."
• On the Gulf shut in front, yesterdays BSEE estimate pointed to 27% (~479K bpd) of production being shut in.
• OPEC+ meetings will dominate over the next couple of sessions, with DoE inventory data also due later today.