Crude In Tight Range But Holding Onto Gains

Oil prices have been moving in a very narrow range during the APAC session but have held onto most of Tuesday’s gains. WTI is down 0.2% to $82.72/bbl, close to the intraday low of $82.68. Brent is also 0.2% lower at $86, which is providing support with moves below tending to be brief. The USD index is slightly lower.

• WTI is now up 1.1% in August so far and Brent +0.7%.
• Bloomberg reported API data showing a US inventory build of 4.1mn barrels in the latest week after the huge 15.4mn drawdown, according to people familiar with the data. The official EIA data print later today and last week printed at -17.05mn barrels.
• Risks to Russian crude shipments from tensions in the Black Sea remain after the Ukraine’s Zelensky said that it would choose its targets if Russia blocked Ukraine’s ports. The hostility around shipping has provided support to markets this week.
• The calendar is very quiet later with no data/events of note. The focus is on Thursday’s US CPI. OPEC+ and IEA reports are also released this week.