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Equity & USD Dynamics Weigh

OIL

The post-FOMC minutes theme of a bounce in the USD and downtick in U.S. equities has weighed on crude, with WTI & Brent trading ~$0.40 below their respective settlement levels at typing.

  • Wednesday's OPEC+ JMMC gathering saw the group press the serial overproducers re: their compliance to the production deal. We also saw the Russian Energy Minister stress that his country has exhibited 100% compliance with the pact month-to-date.
  • Wednesday also saw the latest DoE inventory report reveal a shallower than expected drawdown in headline crude stocks, a deeper than expected drawdown in gasoline stocks and a surprise, modest build in distillate stocks. There was also a modest drawdown in stocks at the Cushing hub.
  • On the infrastructure front, Valaris, the world's largest offshore rig owner (in fleet size) filed for Chapter 11 on Wednesday.
  • Participants will look to U.S.-Iranian tensions, with the Trump administration set to declare the snapback of sanctions on Iran on Thursday.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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