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Pressured By Inventories & Production

OIL

Crude futures have extended their decline in Asia on Wednesday, WTI is down $0.45 at $63.56/bbl, Brent is down $0.55 at $66.97/bbl.

  • Oil fell as the greenback strengthened, while bullishness over OPEC+ rolling production quotas faded and the API reported a large build in US crude stocks. The EIA also revised up its outlook for 2021 production by 100,000 bpd to 11.1m bpd, and for 2022 production by 500,000 bpd to 12m bpd.
  • Meanwhile, API data showed a 12.8m bbl build in headline US crude inventories. The markets took solace in the much more bullish product data from the API, which showed 8.5m bbl and 4.8 m bbl draws in US gasoline and distillate inventories, respectively. Markets look ahead to the more comprehensive DOE data later today.

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