Prices Higher, Waiting For Key Information Later In The Week

Oil prices are moderately higher during APAC trading after falling sharply on Tuesday, as growth concerns came to the fore. WTI is up 0.4% to $77.48/bbl and Brent +0.4% to $81.07. The USD index has been trading sideways.

• Almost the entire post-OPEC+ output cut announcement has been unwound on US recession fears and disappointing demand from China. WTI is holding above $77 with today’s intraday low at $77.01 and the high at $77.54. Brent has moved above $81 following an intraday low of $80.57 and is close to its high of $81.14.
• The market is waiting on some clarification on what the Fed is likely to do on May 3 from Q1 GDP, PCE data and employment cost index, all due before the end of the week. Analysts currently expect a further 25bp hike. Also large oil companies report Q1 earnings on Friday.
• Later there is EIA official US inventory data. The API reported a large crude drawdown of 6.1mn barrels, according to Bloomberg. There are also preliminary US durable goods orders for March.