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European Demand Worry Weighs

OIL

Worry surrounding the COVID-19 situation in Europe (and the impact on demand of probable deeper COVID-19 mitigation measures in both Germany & France) weighed on crude in post settlement trade, with Brent & WTI both sitting ~$0.80 softer on the day at typing, unwinding most of Tuesday's gains.

  • A larger than expected headline crude build in the weekly API inventory estimates, coupled with a surprise build in gasoline stocks, did little to help bulls, although the larger than expected drawdown in distillates may have provided a modest cushion.
  • The latest weather developments in the Gulf of Mexico provided some support for the space on Tuesday, with ~50% of U.S. gulf crude production in the region now shut in, per the latest BSEE daily tally.
  • Weekly DoE inventory data is due to be released later today.
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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