Crude Eases On Concerns Fed Tightening Will Weigh On Demand

Oil prices rose on Monday due to demand optimism but have retreated during APAC trading but remain in a narrow range. The market is waiting for Wednesday’s Fed minutes to gauge how much tightening will weigh on demand. Brent is down 1.1% to $83.15/bbl, close to the intraday low of $83.12. It reached a high of $83.94 earlier in the session. WTI is around $76.40. The USD index is 0.2% higher.

• Brent is trading between resistance at $86.95, the February 14 high, and support at $75.06, the February 17 low. It has moved below its 50-day simple moving average again.
• Kazakhstan has created its own oil brand as an attempt to disentangle itself from Russia and sanctions. But since Kazakh oil is pumped through Russian pipelines, its price is still under pressure.
• API inventory data is scheduled, which are likely to be watched closely given recent large builds. There are no Fed speakers in today’s US calendar but in terms of data preliminary PMIs for February print and are expected to improve. There is also January existing home sales, which are projected to rise after declining the previous month. Canadian inflation is expected to ease slightly.