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Oil Gains Post EIA Release

OIL

Crude prices firmed ahead of the EIA release but gained more strength after. The report showed a 4.5mn bbl increase in crude stocks – which were supported by a net 1mn bbl increase in imports.

  • Gasoline stocks saw a small decline while implied demand on a four-week average reached 9.2mn bpd - the highest four-week average since late 2021 and on a seasonal basis since 2019.
  • Crude is gaining some ground head of this weeks OPEC+ meeting which many anylsts thought would lean more heavily towards extending cuts if Brent goes sub-$70/bbl this week – a move now looking less likely.
  • Brent AUG 23 up 1.8% at 73.89$/bbl
  • WTI JUL 23 up 2.2% at 69.62$/bbl

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