Oil Markets Soft After API Release

Crude has softened in the early morning session with last night’s API data showing a significant build ahead of EIA figures out later today - pointing towards a slowdown in demand. The inventory data dampened bullish sentiment that sent the market up 3% in the previous session

• Brent FEB 23 down -0.2% at 80.48$/bbl
• WTI JAN 23 down -0.2% at 75.22$/bbl
• Gasoil JAN 23 up 0.7% at 889.5$/mt
• WTI-Brent down -0.05$/bbl at -5.2$/bbl
• Oil markets are ready to respond to US Federal Reserve policymakers interest rate hikes later today. Any deceleration of interest rate hikes in the US would be supportive of oil.
• The oil markets have been buoyed this week by signs of easing lockdowns across China as well as fears that the Keystone pipeline shutdown may be face a more prolonged closure than expected.
• OPEC’s latest monthly report, out yesterday, said that it is expecting to see robust global oil demand growth in 2023, with potential economic upside coming from a relaxation of China's COVID-related policies
• WTI JAN 23-FEB 23 down -0.01$/bbl at -0.06$/bbl
• Brent FEB 23-MAR 23 up 0.02$/bbl at -0.16$/bbl
• Weaker oil product demand has also been weighing on diesel and gasoline crack spreads. GasBuddy placed gasoline demand at 8.4mn bpd last week, 2% lower than the week prior. EIA product supplied figures out later will indicate any further slowdown in demand.
• US gasoline crack up 0.1$/bbl at 15.49$/bbl
• US ULSD crack down 0$/bbl at 54.59$/bbl