Crude Steady In APAC Session, Headed For A Second Monthly Rise

Oil prices are headed for their second straight monthly rise as they are little changed during APAC trading after falling around 0.8% yesterday. Expectations of an extension to OPEC cuts are outweighing continued US stock builds. WTI is unchanged at $78.53/bbl, close to the intraday high, and Brent is 0.1% lower at $82.11, closes to today’s $82.13 peak. The USD index is down 0.1%.

• Oil weakened on news that EIA crude stocks rose a more-than-expected 4.2mn barrels last week after 3.5mn the previous week. Gasoline fell 2.83mn and distillate -0.5mn but refinery utilisation rose almost 1pp to 81.5% resulting in increased product output.
• WTI timespreads widened further indicating a tightening of the market, according to Bloomberg. Trafigura’s chief economist Rahim noted that “you’re hearing the phrase ‘upside risk’ a lot more” from the manufacturing and petrochemicals sectors.
• Later the Fed’s Bostic, Goolsbee and Mester speak. January US income/spending data including the PCE deflators, jobless claims, February MNI Chicago PMI and Kansas Fed index print. There are also German, French and Spanish preliminary February CPIs and Q4 Canadian GDP.