Crude Range Trading, EIA US Data Out Later

Oil prices have been range trading during today’s APAC session to be little changed after rising strongly yesterday on increased hopes of a Fed cut. Brent is steady around $88.42/bbl, after a peak of $88.54 earlier, and WTI is at $83.40 after a high of $83.55. The USD index is down 0.1% but providing little support to crude.

• The US included an extension to sanctions on Iran’s oil sector in its foreign aid bill that the senate has now passed. It will extend measures to include ships and refineries that process and transport Iranian crude, and all financial transactions for the purchase of oil products between China’s financial institutions and Iranian banks facing sanctions. Analysts don’t expect the new measures to have a material impact on Iran’s crude exports, according to Bloomberg.
• After a number of large weekly inventory drops, Bloomberg is reporting that US crude stocks fell 3.23mn last week according to people familiar with the API data. Gasoline continued to fall at -595k but distillate rose 724k. The official EIA data is released later today and if it also falls would be the first decline in five weeks.
• Later preliminary March US durable goods and April German Ifo survey print. The ECB’s Cipllone, Tuominen, McCaul, and Schnabel speak.