Crude Continues Falling As Fed And Rising US Stocks Weigh On Market

Oil prices continued their downward move during APAC trading. WTI is down a further 0.8% to $78.40/bbl after falling 1.6% on Tuesday and Brent is down 0.8% to $84.90 after -1.6%. Both are close to their intraday lows. The USD DXY is up 0.2%.

• Brent has moved just below its 100-day simple MA and WTI is approaching its 50-day MA. Brent remains well above support of $83.05, the February 9 low, and WTI above $76.52, the February 9 low.
• The down move in crude has been driven by the large 10.51mn barrels build in US stocks reported by the API. Gasoline inventories rose 846k and distillate 1.73mn. The official EIA data is published later today. Inflation worries and their implications for US rates are also weighing on oil.
• OPEC revised up its 2023 oil demand forecasts in its monthly report due to higher demand from China. It also now expects a slightly tighter market this year. The IEA publishes its monthly outlook today.
• Later today January US retail sales print and a strong outcome of 1.8% m/m is expected but the control group is forecast to rise only 0.3%. There are also US business inventories and IP and UK inflation data. No Fed officials are scheduled to speak.