Crude Starts APAC Session Higher

Oil prices rose moderately on Tuesday and held above key levels. WTI was up 0.4% to $81.37/bbl and has started the APAC session 1% higher and is trading around $82.20. Brent rose 0.4% to $85.78. The USD index is 0.3% higher, which put pressure on crude.

• WTI reached an intraday high of $82.22 above resistance of $82, July 31 high. Brent made a high of $85.91 breaking resistance of $85.60 and opening up $86.18, January 23 high.
• The US has turned down more offers to replenish its SPR due to the market, according to Bloomberg. WTI prices holding above $80 is likely to be driving reluctance to purchase. The administration wants to restock at around $67-72/bbl.
• Bloomberg is reporting that API US crude inventories fell 15.4mn barrels with the key storage hub Cushing down 1.76mn, gasoline -1.68mn and distillate -512k, according to sources familiar with the data.
• Further on the supply side, Iraqi July crude exports increased to their highest since March while OPEC’s output fell 900kbd. A Reuters survey is showing that Saudi Arabia may increase its price of Arab Light crude to Asia by 45c for the third straight month.