Crude Holding Onto Losses But Supported By US Stock Draw

During APAC trading today oil prices have held onto Tuesday’s losses driven by weaker China data and the stronger greenback. Prices are down around 0.3% with WTI at $80.80/bbl, off the intraday low of $80.68, and Brent $84.67 following a low of $84.55. The USD index is flat but risk appetite has deteriorated with APAC equities down sharply.

• WTI is down 2.9% this week so far and Brent -2.5%.
• Bloomberg reported that API data showed a US crude drawdown of 6.2mn barrels last week, according to people familiar with the numbers, which has helped to support prices on Wednesday. Gasoline stocks fell 761k but distillate increased 658k. The official EIA data is out later.
• WTI’s timespreads remain in backwardation, signalling tight supply, but have narrowed this week in line with lower prices, according to Bloomberg.
• European LNG prices rose 16.2% on Tuesday driven by concerns of strike action in Australia. Today the Australian Union Alliance said that Woodside is “well off the pace” on job security and pay, suggesting that talks are still some way from a resolution.
• There are FOMC minutes due later and UK July CPI along with July US housing & IP data.