Fresh Highs In Asia As U.S. Inventories Extend Decline

WTI and Brent are ~$0.60 firmer apiece, operating a little below fresh three-week highs at writing, with both benchmarks firmly on track to end the week higher amidst a spread of supply-negative developments (i.e. potential OPEC+ production cuts, uncertainty re: a U.S.-Iran nuclear deal etc).

• To recap, WTI and Brent closed higher for a third straight session on Wednesday after EIA data pointed to a larger than expected drawdown in crude inventories, and a surprise decline in distillate stockpiles. Gasoline inventories were little changed (vs. expectations for a drawdown), while there was a build in Cushing hub stocks.
• Looking into the details, total U.S. exports of crude and refined products came in at the highest on record, exacerbating worry re: tightness in global crude supplies amidst shrinking U.S. stockpiles and an end to the release of crude from the U.S. SPR in October.
• Elsewhere, the U.S. has responded to the EU’s “final draft” re: a U.S.-Iran nuclear deal. While no details re: progress in the negotiations were forthcoming, Tehran has begun a “careful review”, with an Iranian reply to the EU due.
• Oil loadings at Caspian Pipeline Consortium (CPC) facilities on the Black Sea are due to be disrupted by ~30-40% (per RTRS calculations) over the next few months, as the operator arranges for repairs to previously-flagged weather damage to port facilities.