Crude Off Intraday Lows Driven By US Inventory Data

Oil prices are down slightly during APAC trading today following the lower-than-expected US crude inventory report earlier. They rose around a percent yesterday. WTI is off its low of $77.52/bbl and is currently around $77.84, while Brent is down 0.1% to $82.65 up from $82.33. The US dollar is down slightly after rallying Tuesday.

• Bloomberg reported that there was a higher-than-expected crude inventory build of 8.52mn barrels but gasoline stocks fell 7.23mn and distillate -4mn, according to people familiar with the API data. Inventories have been volatile since a cold snap impacted flows and refining in January. The official EIA data is out later today.
• OPEC is positive regarding the demand outlook but its report showed that there was only partial compliance with the new quotas. The IEA sees continued supply growth being able to more than cover demand. Its monthly report is published on Thursday.
• Diesel and gasoline prices are at their highest since October posting strong increases so far this year, according to Bloomberg.
• Later the Fed’s Goolsbee and Barr speak as well as BOE’s Bailey, ECB’s de Guindos and Cipollone. There is no data in the US but UK January CPI/PPI and euro area Q4 preliminary GDP/employment and December IP print.