WTI and Brent are $0.20 firmer apiece at writing, having struggled to breach Monday’s best levels in Asia-Pac dealing as worry re: central bank-led economic slowdowns remains elevated heading into a host of central monetary policy decisions due this week.
- Focus for the week will be on the FOMC on Wed, with recent Dollar strength providing headwinds for crude as the DXY continues to hover near recent cycle highs.
- Hope surrounding a U.S.-Iran nuclear deal remains scant, with France saying on Monday that there would “not be a better offer”, highlighting that no parallel efforts were underway to advance the talks, echoing remarks from the EU’s Borrell that he did not see a better solution.
- BBG source reports have pointed to the UAE bringing forward plans to raise crude output capacity to 5mn bpd by 2025 (from 2030 prev). The UAE’s current output is estimated at ~3.4mn bpd.
- Elsewhere, the U.S. announced the sale of 10mn bbls of crude from the SPR for delivery in Nov, representing an extension in the schedule for existing plans re: a 180mn bbl release from the SPR.