Crude Higher In APAC Trade Supported By Fed Tone
Oil prices are around a percent higher in APAC trading today helped by further dollar softness and better risk appetite following a more dovish Fed press conference. They have been down each of the last three days. The USD index is down 0.3% after -0.2% yesterday. WTI is around $81.24, close to the intraday high of $81.53. Brent is trading at $85.43 after a high of $85.71.
- There are signs that the market is easing with EIA reporting a crude stock build in the US in the latest week and the prompt spread has narrowed. But according to Woodmac data, European inventories are at seasonal decade low. The demand outlook, especially in the US and China, will continue to be a focus while the Middle East conflict seems contained. Attention now turns to Friday’s US payrolls.
- Later the Fed’s Paese gives welcoming remarks. On the data front, US Q3 unit labour costs, September orders and October Challenger job cuts print. Also the ECB’s Lane and Schnabel speak, the BoE decision is announced and European manufacturing PMIs released.