May 02, 2024 04:33 GMT
Crude Regains Some Of Yesterday’s Losses
OIL
Oil prices are higher during today’s APAC trading after falling close to 3.5% yesterday. Brent is up 0.6% to $83.95/bbl, close to the intraday high, and WTI is also 0.6% higher at $79.49. This moderate recovery has been supported by a softer greenback (USD index -0.4%).
- A large US crude stock build of 7.27mn barrels spooked markets on Wednesday resulting in the sharp sell off. Prices fell through support levels signalling that they could decline more. Gasoline stocks rose 344k while distillate fell 732k as refinery utilisation fell 1pp to 87.5%.
- While Fed Chair Powell said that another hike is unlikely, the “higher for longer” stance has also worried markets as it could mean weaker oil demand with the US driving season approaching.
- On the supply side, April OPEC output was only 50kbd lower than March signalling that the group’s agreed cuts have still not been fully implemented, according to Bloomberg. Iraq and Libya increased production while Iran and Nigeria reduced it.
- Later US Challenger job cuts, Q1 productivity/ULC, March final durable orders and jobless claims print. The ECB’s Lane speaks and European April manufacturing PMIs are released.
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