Crude Hitting New Lows Despite Stock Draw

WTI is falling to its lowest level since Dec. 18 amid slightly eased shipping concerns in the Red Sea and despite a larger than expected draw in US oil inventories.

• WTI FEB 24 down -2.7% at 72.13$/bbl
• WTI-Brent down -0.77$/bbl at -6.36$/bbl
• WTI FEB 24-MAR 24 up 0.03$/bbl at -0.2$/bbl
• WTI MAR 24-APR 24 up 0.01$/bbl at -0.16$/bbl
• While shipping in the Red Sea remains a risk, with half of container ships avoiding the region, a US led task force is being deployed to protect the route and major shipping firms such as Maersk and CMA CGM are resuming passage through the Red Sea.
• Crude inventories showed a much larger than expected draw driven by a drop in imports and despite another unexpected dip in exports.
• Crude production remained up at record levels while higher refinery runs added to the draw. Utilization rates were up to 93.3% with Midwest at the highest level since August 2017.