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Little Changed In Asia; Russian Crude Production In Focus


WTI and Brent are ~$0.20 better off at typing, back from their best levels of the session, and operating a touch below their respective, recently-made one-week highs.

  • Major crude benchmarks have caught a bid as RTRS source reports on Tuesday pointed to a decline in average Russian oil output in April so far, adding to worry re: more disruptions to Russian crude exports after Russian President Putin declared that Russia-Ukraine peace talks have hit a “dead-end”.
  • Looking to China, despite a reported partial lifting of lockdowns in Shanghai, factories and “non-essential” businesses remain mostly shut. Worry re: risks to the economy has become increasingly evident, with Chinese Premier Li Keqiang noted to have made three separate statements warning of economic growth risks within the past week. Total fresh daily cases nationwide reported for Apr 12 edged up to ~27.9K (vs. ~24.5K Apr 11), with cases in Shanghai remaining elevated at ~26.3K (vs ~23.3K Apr 11).
  • Elsewhere, the latest weekly U.S. API inventory estimates crossed late on Tuesday. Reports pointed to a larger than expected build in crude stockpiles and an increase in Cushing hub inventories, while there was a drawdown in gasoline and distillate stockpiles.
  • Looking ahead, EIA data is due later on Wednesday (1430 GMT), with WSJ estimates calling for increases in crude stockpiles. Distillate stocks are tipped to remain unchanged, while gasoline inventories are expected to decline.

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