Higher In Asia In Wake Of U.S. & UK Embargoes Of Russian Oil

WTI is +$2.80 and Brent is +$3.60, with both benchmarks operating ~$2 to $3 below Tuesday’s highs at writing. Crude remains strongly bid as worry re: tightness in global supply continues to mix with well-documented aversion of Russian oil amongst traders, while some focus has shifted to progress in the G7’s partially enacted embargo of Russian energy imports.

• To elaborate, the U.S. is banning Russian oil, gas, and coal imports immediately, while the UK will “phase out” Russian crude imports by end-’22, with further measures re: reduction of Russian natural gas imports expected to come later this week. The announcements have come independent of Japan and Europe, with the latter still facing firm, German-led opposition to proposed sanctions on Russian energy products.
• Elsewhere, the latest round of weekly U.S. API inventory estimates crossed late on Tuesday. Reports pointed to a surprise build in U.S. crude stockpiles, while there was a drawdown in gasoline, distillate, as well as hub inventories.
• Looking ahead, U.S. EIA data is due later Wednesday (1530 GMT), with WSJ median estimates calling for a decline in crude, gasoline, and distillate stocks.
• Looking to technical levels, resistance for WTI and Brent is situated at their Mar 7 highs of $130.50 and $139.13 respectively, while support is seen at $105.18 (Mar 2 low) for WTI, and $106.83 (Mar 2 low) for Brent.