Consolidating Above Wednesday’s Eight-Month Lows; EIA Inventory Data Due

WTI and Brent are ~$0.60 firmer apiece, paring a little of Wednesday’s losses at writing, with both benchmarks having shed ~$5 apiece in that session amidst elevated worry re: Chinese crude demand and tighter central bank monetary policy.

• Crude has drawn some support from comments by Russian Pres Putin re: the cessation of energy exports to countries adopting a price cap, that came ahead of an announcement from the European Commission on plans to propose a price cap on Russian gas.
• The recent decline in crude also comes ahead of the ECB’s policy decision later today, with a 50bp vs 75bp hike still in the balance, leaving open some uncertainty re: expectations for economic growth amidst higher rates.
• Elsewhere, the latest round of U.S. API inventory estimates saw reports point to a surprise, significantly large build in crude stockpiles, adding to the surprise build reported last week as well. Distillate stocks increased, unwinding last week’s decline, while gasoline and Cushing hub stocks decreased for another week.
• Looking ahead, U.S. EIA inventory data is due later today, with BBG median estimates calling for a modest drawdown in crude stockpiles.