Crude Stable Ahead Of Further Comments From The Fed’s Powell

Oil prices fell sharply on Tuesday following Fed Chairman Powell’s more hawkish comments implying a possible 50bp move. WTI was down 4% to $77.58/bbl and is currently trading around that level, which is close to today’s intraday high. Brent is currently up 0.2% to be trading around $83.45/bbl. The USD index is up 0.2%.

• Tuesday’s correction in crude reversed the recent bull cycle. WTI held above support of $75.83, the March 3 low, and has continued to do so today.
• US API data showed that crude stocks fell 3.8mn barrels last week after rising 6.2mn. Distillate rose 1.9mn and gasoline 1.8mn. This is an early indication that extensive refining maintenance may be coming to an end. The official EIA data is published later today.
• OPEC+ Secretary General Al-Ghais said that the market was concerned about reduced oil demand from Europe and the US, even as Asian consumption is “phenomenal”.
• China imported 10.4mbd of crude in February, which was down 11% on December and -3% y/y. This data may be reflecting the build up in stocks over the last two years. (bbg)
• Later today Fed Chairman Powell appears before the House Financial Services Committee, Barkin speaks and the Beige Book is published. ECB President Lagarde also speaks. The Bank of Canada is expected to pause. Ahead of Friday’s US employment data, there is February ADP employment and also JOLTS vacancy data. US January trade data are also released.