Stable After Pullback From Cycle Highs

The recovery and subsequent rally in the broader USD, coupled with a softer than expected U.S. ISM services survey and downtick in equity markets saw oil pull away from cycle highs on Tuesday, before a degree of stability kicked in during Asia-Pac trade, with both WTI & Brent hovering around settlement levels at present. The continued OPEC+ impasse (centring on the Saudi-UAE discord) still garners the bulk of the attention in the space, although most of the sell-side expect a deal to be struck at some point (in typical OPEC+ fashion). A reminder that the latest round of weekly API inventory estimates will hit after hours on Wednesday (one day later than usual owing to the elongated U.S. weekend). The backwardation in both the WTI & Brent futures curves continues to indicate tight markets from a supply perspective.