Crude Continues Fall Following Large US Crude Stock Build, IEA Report Later

Oil prices have continued falling during the APAC session after declining around 1.5% on Wednesday following a large crude inventory build in the US. WTI is down 0.6% to $76.20/bbl, close to the intraday low. Brent is down 0.5% to $81.22. The USD index is little changed.

• The EIA reported a larger-than-expected 12.02mn barrel inventory build in the US but with refining capacity dropping 1.8pp to 80.6% gasoline stocks fell 3.66mn and distillate -1.92mn. Product destocking provided some support to prices.
• Market signals, such as timespreads and refining margins, are implying tighter supply, according to Bloomberg. The IEA monthly report with supply and demand projections is published today. Earlier this week its chief Birol said that markets should remain “comfortable” as output rises and demand eases.
• There is a swathe of US data which will be important for dollar moves and the Fed outlook with markets shifting to a “higher for longer” view, which impacts the energy consumption outlook.
• Later the Fed’s Waller speaks on the US dollar, ECB’s Lagarde and Lane and BoE’s Mann and Greene also speak. Retail sales, trade prices, Philly & Empire indices, jobless claims, IP and NAHB housing index all print in the US. UK Q4/December GDP, IP and trade are released.