Demand Worry Continues To Limit

WTI and Brent sit ~$0.20 below their respective settlement levels, after finishing virtually flat across the board on Tuesday. It would seem that the demand side of the oil equation is still limiting the space, even as the S&P 500 records fresh all-time highs. Still, it isn't all doom and gloom on that front. With estimates indicating that the amount of crude & condensate stored on global tankers has hit the lowest level seen since May, although Kpler noted that volumes held off of China remain elevated.

• Tuesday's API crude inventory estimates revealed a deeper than expected draw in headline crude stocks, a surprise build in gasoline stocks, a slightly deeper than expected drawdown in distillate stocks and a drawdown in stocks at the Cushing hub.
• Elsewhere, Libya continues to garner supply side attention. Authorities in the east of the country announced that they will allow limited exports from blockaded ports to free up storage & facilitate the production of power station fuel.
• It is also worth noting that Brazil has pushed back the schedule for its next round of oil exploration block auctions.
• Finally, BBG source reports have noted that "the Trump administration is considering additional sanctions on Venezuela aimed at halting the remaining fuel transactions permitted with the South American nation."
• Wednesday's OPEC+ JMMC meeting and the latest round of weekly DoE crude inventory data present the immediate risk events for the space.