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Rally Rides Again

OIL

Crude futures are higher in Asia on Thursday, extending yesterday's rally, though still just below highs hit on Thursday. WTI is up $0.35 at $61.63, brent is up $0.42 at $64.49.

  • Production data yesterday was bullish for crude. gasoline inventories collapsed, dropping the most since 1990 after the Texas deep freeze took out over 5m bpd of refining capacity, distillate inventories also recorded their largest draw since January 2003. Headline crude stocks rose but markets instead focused on the bullish downstream readings.
  • There were additional tailwinds for oil from OPEC+ headlines, where no recommendation was made on output. Some member states appear to be pushing for a higher level of easing of the cuts, while others are being more cautious. It was reported that Saudi Arabia are cautious on oil's recovery and wants to limit any rise in production quotas. The talks will continue today.

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