Slightly Firmer In Asia; FOMC, U.S. Inventories Eyed

WTI and Brent are ~$0.20 better off apiece, with both benchmarks having held a tight ~$1 range across Asia-Pac dealing so far.

• Focus for crude remains on event risk from the FOMC’s policy decision later on Wednesday, with both benchmarks sitting ~$3 above their respective eight-month lows made earlier in Sep amidst evident worry re: central bank-led economic slowdowns.
• Both benchmarks were little changed on the latest round of U.S. API inventory estimates, with reports pointing to a smaller-than-expected increase in crude stocks, while a build was also reported in gasoline, distillate, and Cushing hub stockpiles.
• Looking ahead, U.S. EIA inventory data is due, with BBG median estimates calling for a large build in crude stocks, and modest drawdowns in gasoline and distillate stockpiles.
• Saudi Aramco’s CEO on Tuesday pointed out that chronic under-investment in fossil fuel energy production has not changed, reiterating that current spare capacity will be unable to handle a rebound in economic activity globally.
• Elsewhere, U.S. senators have raised possible legislation for secondary sanctions on Russian crude, intending to target countries that do not intend to join in on proposed price caps.