Crude Down Again As Hawkish Fed Weighs On Market

Fed Chairman Powell’s hawkish comments continued to weigh on crude on Wednesday. Prices fell steadily over the day and Brent is now 0.9% lower at around $82.53/bbl while WTI is down 1.4% to $76.52. They are off of their intraday lows of $82.06 and $76.11 respectively. The USD index is flat.

• WTI moved close to support at $75.83, the March 3 low. Brent cleared its support of $82.36 earlier but is now sitting just above it. The next level to watch is $80.25, the February 23 low.
• The EIA’s official US inventory data showed a drawdown of 1.694mn after the previous week’s 1.165mn build suggesting that extensive refining maintenance may be coming to an end.
• Commodities trader Trafigura expects prices for Brent to rise into the $90s later in 2023 on the back of stronger China demand and lower Russian supply. (bbg)
• US shale producers said on Wednesday that increasing costs and pressure to provide returns to shareholders was weighing on US supply.