On Track For Lower Weekly Close; OPEC+ Reaction Eyed As Crude Dips Below $90

WTI and Brent deal ~$0.40 firmer apiece, operating just shy of their respective Thursday peaks at writing.

• Both benchmarks however sit a short distance above recently made eight-month lows, remaining on track for a second consecutive lower weekly close amidst an uptick in wider worry re: energy demand and increases in U.S. crude stockpiles.
• Looking ahead, some will be watching for reactions from OPEC+ as WTI and Brent have dipped below $90 this week, keeping in mind their recent 100K bpd cut to production quotas - a numerically insignificant decrease, that served more to signal the group’s intent to defend higher crude prices.
• The latest round of U.S. inventory data saw a significantly large, surprise build in crude stockpiles, more than unwinding the large decline observed last week, and corroborating prior reports of API estimates.
• There was a marginal, surprise build in gasoline and distillate stockpiles, while Cushing hub stocks declined.
• The White House on Thursday stated that it is “too early to say” if SPR releases will continue past the original 180mn bbls earmarked. WTI and Brent nudged lower after but ultimately failed to record fresh lows, likely owing to the lack of details surrounding the remarks.