Crude Holding Shy Of Recent Highs

A tech-driven uptick in e-minis supported broader risk appetite during Asia-Pac hours, which allowed WTI & Brent futures to add a little over $0.30 apiece to settlement levels.

• Reports covering the latest weekly round of U.S. API crude inventory estimates pointed to a surprise drawdown in headline crude stocks, a drawdown in stocks at the Cushing hub, a larger than expected build in gasoline stocks and a slightly wider than expected drawdown in distillate stocks. The net impact of the report was virtually non-existent when it came to crude prices.
• Oil continues to oscillate just shy of the recent cycle highs, with today’s focus falling on the weekly DoE inventory data out of the U.S. and the latest OPEC+ gathering. A quick reminder that OPEC+ is expected to stick to the pre-prescribed cumulative 400K bpd lift in joint production in March come the end of today’s virtual gathering. Questions continue to circle re: the ability of certain participating nations when it comes to fulfilling increased production quotas, with some already failing to pump the maximum permitted amount.