Little Changed In Asia

WTI and Brent are $0.10 firmer apiece, operating comfortably within Wednesday’s trading range at typing. Both benchmarks sit a short distance away from recent multi-month lows amidst headwinds from worry re: economic slowdowns, adding to pressure from improvements in the outlook for supply.

• WTI and Brent closed ~$1 higher apiece on Wednesday, ultimately halting a three-session streak of losses after the release of the EIA’s weekly inventory data. The release was headlined by a significantly larger-than-expected drawdown in crude stockpiles mainly due to record-high U.S. crude exports, while gasoline inventories saw a larger-than-expected decline as well, alleviating prevailing worry re: domestic demand destruction. Small builds were observed in distillate and Cushing Hub stocks.
• Looking to crude supply matters, RTRS sources have pointed to Russian crude production rising despite Western sanctions earlier this year, with Moscow reportedly raising output and export forecasts through to ‘25. Elsewhere, Saudi oil output and exports for June were reported to have increased as well, with crude output hitting the highest levels observed since Apr ‘20.
• The prompt spreads for WTI and Brent remain a little off their respective multi-month lows, printing ~$0.40 and ~$0.60 respectively, pointing to a moderation in worry re: tightness in global crude supplies from their extremes witnessed in earlier months.
• Turning to Iran, unresolved issues surrounding ongoing negotiations re: a U.S.-Iran nuclear deal remain at the fore, with Tehran reportedly requesting the addition of additional articles to the EU’s “final draft”.