Crude Futures Recover Early Losses

Oil recovered early losses to see minor positive territory in the Asia-Pac time zone; WTI is up $0.11 from settlement levels at $65.73/bbl, while Brent is up $0.18 at $69.14/bbl.

• Data from the DoE showed US oil stockpiles declined 8.0m bbls, denoting the largest weekly drop since 22 January. The fall in US oil stockpiles was mostly driven by US oil exports rising to record highs. The decline was steeper than the API's estimate of a 7.7m bbl decrease. The downstream figures were less bullish which weighed on oil, gasoline stockpiles rose 700k bbls. Elsewhere the demand picture is positive, pent up travel demand due to the pandemic is estimated to increase jet fuel use by 30% this summer according to the US governments, and elsewhere refineries run rates rose to almost 87% in the latest week, the highest since March 2020 as fuel production ramps up ahead of the summer driving season.