Loses Further Ground

Brent crude has continued to slip, down nearly 1% so far today, to be back at the $82.30/40/bbl region. This follows Wednesday's near 2% loss. We are very close to the simple 50 and 100-day MAs, which come in between $82.00 and $82.40/bbl. A move below these levels would traget a test of the $80/bbl handle.

• WTI is following a similar trajectory, albeit underperforming Brent at the margins. The WTI benchmark was last in the $78.30/40/bbl region.
• These moves come despite a further run down in US oil inventories, as reported by EIA during Wednesday's session. Demand fears seemingly outweighing supply concerns at this stage.
• There have also been reports of weaker demand conditions out of Asia, stockpiles of distillates in Singapore at highs going back to 1995. Increased fuel exports out of China are also easing supply concerns.