Crude Continues Slide Ahead Of Fed, Israel-US Meetings & EIA Data

Oil prices have continued to sink during APAC trading today ahead of the Fed decision later. Also US secretary of state Blinken is in Israel for discussions with Netanyahu and other government officials. There is hope that a Gaza ceasefire deal will be agreed, the prospect of which has eroded oil’s geopolitical risk premium this week. A rise in US crude stocks and stronger US inflation indicators have also pressured markets. The stronger USD is also weighing on prices with the index up another 0.1%.

• WTI is down 1.0% today to $81.12/bbl after a low of $81.06. It has traded below support at $81.20 for most of the session. Brent is 0.9% lower at $85.57/bbl close to the low of $85.54 but it remains above support at $85.32. Volumes have been light given most of Asia is closed for holidays.
• Bloomberg reported that US crude inventories rose 4.91mn barrels last week but gasoline fell 1.48mn and distillate -2.19mn, according to people familiar with the API data. The official EIA figures are released today.
• Later the Fed decision is announced (see MNI Fed Preview) and April ADP employment, ISM/PMI manufacturing and March JOLTS job openings print. UK April manufacturing PMI is released, while Europe ex UK is closed.