WTI and Brent are ~-$0.20 softer apiece, operating a little below their respective best levels on Wednesday. Both benchmarks have maintained relatively tight ~$6 trading ranges over the past week, with prevailing recession-related worry (and the corresponding decline in the energy demand outlook) continuing to weigh against well-documented concerns re: tightness in global crude supply.
- Looking at Wednesday's price action, major crude benchmarks rebounded from their CPI-induced lows after the release of weekly U.S. EIA data, hitting session highs just shy of Tuesday’s peaks in the process. While the release had pointed to a significantly-larger-than expected build in crude inventories (comfortably surpassing even last week’s ~4.5mn bbl build), gasoline stocks however saw a significantly larger-than-expected drawdown amidst a previously-flagged decline in gasoline prices, relieving worry from some quarters re: demand destruction.
- Gasoline stockpiles in the central East Coast of the U.S. are at their lowest levels since Nov ‘12, with analysts pointing to its potential impact on global prices given the status of the NY harbour as a location for physical deliveries.
- Up next, monthly outlook reports are due from both the International Energy Agency (IEA) and OPEC later on Thursday.