Pulls Back In Asia After Three-Day Rally

Oil is slightly lower in Asia-Pac trade on Thursday, impacted by generally negative sentiment in the region after a three-day rally, the dollar index has crept higher which has exerted some extra pressure on crude futures. Worries over the delta variant persist, the EU is scheduled to discuss reimposing restrictions on US visitors later today while restrictions remains in place in many countries, though the prospect of increased demand from India and effective containment policies in China are supportive. Inventory data yesterday showed headline stockpiles fell 2.98m bbls, while downstream products also saw stockpile draws. The Jackson Hole meeting, which is due to begin later today, will be key for the direction of risk sentiment, commentary from FOMC Chair Powell on Friday headlines that (now virtual) event.