Early Downtick Pared

WTI and Brent crude futures sit little changed on the day, after the early downtick faded. Continued apprehension when it comes to meaningful progress surrounding the de-escalation of the Russia-Ukraine conflict allowed crude to reverse early losses.

• The early downward impetus came on the back of weekend confirmation that the IEA will release oil from strategic reserves alongside the well-documented U.S. SPR release (although no further details have been forthcoming), while worry re: Chinese demand remained evident given the extension of the COVID-related lockdown & nucleic testing requirements in the city of Shanghai, and finally, but perhaps most importantly, Iran signalled that a deal re: the revival of the previous nuclear accord with the U.S. is “close,” after the country sent suggestions to the U.S. via European mediators (a reminder that the U.S. has previously suggested that it does not expect a deal to be forthcoming in the immediate term). Elsewhere, we note that Yemeni factions have declared a 2-month ceasefire in the 7-year long civil war.