Headline API Inventory Build Weighs

A larger than expected headline crude stock build in the weekly API inventory estimates has applied pressure to crude in post-settlement and overnight dealing, leaving WTI & Brent futures over $1.00 softer at typing. The headline build was accompanied by a surprise, albeit modest, uptick in distillate stocks and a shallower than expected drawdown in gasoline stocks. There was also a marginal drawdown in stocks at the Cushing hub.

• This comes after the benchmark contracts finished little changed on Tuesday.
• Speculation re: OPEC+'s ability to a continue to lift crude production in line with its plans (+400K bpd/month) seems to have intensified in recent days.
• Elsewhere, Tuesday saw Iran flag a significant improvement in oil sales, with the country's exports of oil by-products set to resume in the coming weeks.
• DoE inventory data headlines on Wednesday.