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Crude Futures Tread Water

OIL

After building on Tuesday's gains earlier in the session oil has since retreated and trades around neutral levels; WTI is up $0.01 from settlement at $65.29/bbl while Brent is flat at $68.55/bbl. Earlier Colonial Pipeline said it was making progress on returning system to services and that it was prioritizing markets with supply constraints. The company said it should know later today if it is safe to restart the network. US Energy Sec Granholm said it could take days to fully restore shipments. After market on Tuesday API data showed headline crude stocks fell 2.53m bbls, distillate stocks fell 900k bbls and stocks at Cushing fell 1.2m bbls. Gasoline stocks rose 5.6m bbls. Elsewhere, markets continue to digest the EIA forecast for lower output though 2022, while OPEC raised demand forecasts. The IEA will release its monthly report today, while participants will also watch for US DOE stockpile data.

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