Oil Gains Even As Stocks Build

Crude futures have managed to squeeze out some small gains, but seem reluctant to go higher and have moved in tight ranges for the majority of the Asia-Pac session. WTI is $0.08 higher at $63.31/bbl, brent is $0.16 higher at $67.20.

• Inventory data from the US DOE released yesterday showed headline crude stocks increased 1.28m bbls. The build came contrary to analysts' expectations of a 4.8m bbl draw, and was attributable to power outages and extreme low temperatures in southern US, which shut up to 4.4m bpd of refinery capacity at its peak. The data also showed a 10,000 bbl increase in US gasoline inventories, with a sharp reduction in refinery production countered by a reduction in demand. Implied gasoline demand registered a 1.2m bbls barrel fall -- the biggest such decline since early April 2020. The market largely shrugged off the bearish elements and continued to focus on oil's robust demand outlook amid declining COVID-19 infection numbers. European stockpiles have fallen though as global markets look elsewhere for supply, Genscape ARA crude stocks fell to the lowest since September.