Prices Continue Recovery As Risk Appetite Improves

Crude continued to recover on Tuesday in line with improving risk appetite following the UBS-CS deal and US considerations to raise the deposit insurance limit. Brent rose 1.7% to around $75.07/bbl, close to the intraday high of $75.42 following a low of $72.82. WTI jumped 2.5% to $69.67, just below its high of $69.77. The USD index was flat.

• WTI approached resistance of $69.83, the March 17 high, but didn’t break it. The next level to watch is $72.71. Initial resistance for Brent is $75.92 followed by $78.84.
• Russia’s Deputy PM Novak said that the 500kbd production cut target will be reached in coming days and that it will continue until June. Tanker data however is suggesting that there has been little change to date.
• If recent banking troubles result in credit tightening in the US, then shale production could be impacted, which would put upward pressure on oil prices.
• According to Bloomberg, reportedly there was another increase in US crude stocks conveyed by the API of 3.26mn barrels last week. Whereas gasoline inventories fell 1.09mn and distillate -1.83mn. The official EIA stock data is released later today.