MNI: PBOC Net Drains CNY204.5 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1691 Thurs; -1.02% Y/Y

MNI BRIEF: Ex-BOC's Poloz Sees 20% CAD Drop In Trade War

MNI NBP WATCH: Rates Held At 5.75%, Trump Risk Highlighted

MNI BRIEF: U.S. Wage Growth Stagnating At Strong Levels - ADP

MNI China Daily Summary: Wednesday, February 5

MNI:AUSTRALIA DEC TRADE BALANCE A$+5085

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Wednesday

EZ/UK Bond Supply Calendar: Spain, France Auction; Finland ORI

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Sharp Move Lower In Crude, Higher US Stocks & Possible US Plan For Ukraine

OIL
EM BulletCommoditiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Oil prices fell sharply on Wednesday driven by a larger-than-expected US crude inventory build, concerns a trade war would reduce global demand and possibly higher supply as geopolitical tensions ease. 10% tariffs on US imports from China were implemented this week with some retaliation from China. The USD index fell 0.2%.

  • WTI fell 2.1% to $71.14/bbl after a low of $70.96, breaking below the 50-day EMA at $72.32 but remaining above support at $70.67. If sustained, the breach of the 50-day EMA suggests a deeper retracement.
  • Brent is 2% lower at $74.65/bbl after falling to $74.56, below the 50-day EMA of $75.52. Support at $74.15 remains intact.
  • EIA-reported crude inventories rose 8.66mn last week bringing the total since President Trump’s inauguration to 12.13mn barrels, likely reflecting a strong increase in flows from Canada to beat possible tariffs. Gasoline stocks rose 2.2mn while distillate fell 5.47mn (it is used for heating oil). Both distillate and gasoline demand rose. Refinery utilisation rose 1pp to 84.5%.
  • A plan to end the war in the Ukraine is likely to be unveiled by the US administration next week, according to Bloomberg. Peace in the area could increase Russian energy exports. There is still the likelihood of stricter enforcement on Iran which would reduce its crude exports. 
209 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Oil prices fell sharply on Wednesday driven by a larger-than-expected US crude inventory build, concerns a trade war would reduce global demand and possibly higher supply as geopolitical tensions ease. 10% tariffs on US imports from China were implemented this week with some retaliation from China. The USD index fell 0.2%.

  • WTI fell 2.1% to $71.14/bbl after a low of $70.96, breaking below the 50-day EMA at $72.32 but remaining above support at $70.67. If sustained, the breach of the 50-day EMA suggests a deeper retracement.
  • Brent is 2% lower at $74.65/bbl after falling to $74.56, below the 50-day EMA of $75.52. Support at $74.15 remains intact.
  • EIA-reported crude inventories rose 8.66mn last week bringing the total since President Trump’s inauguration to 12.13mn barrels, likely reflecting a strong increase in flows from Canada to beat possible tariffs. Gasoline stocks rose 2.2mn while distillate fell 5.47mn (it is used for heating oil). Both distillate and gasoline demand rose. Refinery utilisation rose 1pp to 84.5%.
  • A plan to end the war in the Ukraine is likely to be unveiled by the US administration next week, according to Bloomberg. Peace in the area could increase Russian energy exports. There is still the likelihood of stricter enforcement on Iran which would reduce its crude exports.