Prices Steady But Market Still Nervous

Oil prices are fairly steady during the APAC session after falling on Tuesday driven by data signalling China’s recovery is soft. They have been in a fairly narrow range with Brent currently around $75/bbl after an intraday high of $75.15. It has been unable to hold gains above $75. WTI is $70.91 after a high of $71.06, and it has been unable to hold above $71. The USD index has been trading sideways.

• The IEA revised up its global oil demand expectations in its monthly outlook driven by stronger demand from China which it adjusted up by 200kbd to 2.2mbd. Whereas in contrast, some economists have revised down China’s growth outlook after Tuesday’s disappointing data.
• Later the EIA release official US fuel inventory data. According to Bloomberg, the API reported a 3.7mn crude build. Also in the US, there is a Senate Banking hearing on strengthening Fed accountability and there is April housing data released. There is also the euro area April HICP.