Higher In Asia

WTI is +$1.10 and Brent is +$2.70 at writing, printing ~$109.8 and ~$113.8 respectively. Both benchmarks operate far below cycle highs registered earlier in the week as hope surrounding a diplomatic resolution in the Russia-Ukraine conflict has risen, helping to unwind some of the geopolitical risk premium re: the situation. On that matter, focus has turned to “high-level” talks between the Foreign Ministers of Ukraine and Russia in Turkey, due to happen later today.

• To recap Wednesday’s price action, WTI and Brent closed ~$15 lower on the day, declining to session lows after a tweet from the UAE’s ambassador to the U.S. suggested that the UAE would support crude output increases in OPEC+ to address ongoing tightness in global crude supplies. Both benchmarks have since risen off their worst levels, after the UAE’s energy minister reaffirmed the country’s commitment to the current pace of OPEC+ output increases (essentially walking back the ambassador’s earlier remarks).
• Elsewhere, U.S. weekly EIA inventory data on Wednesday again pointed to persistent tightness in oil supplies, with drawdowns observed in crude, gasoline, distillate, and Cushing hub inventories.
• Looking to technical levels, resistance for WTI and Brent is seen at their Mar 9 highs of $124.66 and $131.64 respectively. On the other hand, Wednesday’s price action has seen both benchmarks break below previously defined support, exposing the next support level at Mar 1 lows of $95.32 for WTI and $98.30 for Brent.