U.S. Product Drawdowns In Latest API Estimates Support Crude

WTI & Brent added over $1.00 vs. their respective settlement levels during Asia-Pac dealing, seemingly benefitting from reports flagging a larger than expected drawdown in gasoline stocks in the latest round of weekly API U.S. inventory estimates, with the same reports flagging a surprise (albeit modest) drop in distillate stocks. Elsewhere, the reports pointed to a surprise, small build in headline crude stocks and modest drawdown in stocks at the Cushing hub. Tight U.S. product markets continue to dominate when it comes to this particular release.

• Meanwhile, focus continues to fall on the deliberations re: the latest EU response to the Russia-Ukraine conflict, with a unanimous decision on further sanctions seemingly not on the table at the upcoming EU summit.
• On the Russian supply front, RTRS sources have noted that “Russian Urals crude exports and transit from its Baltic ports in May are expected match the initial plan, despite Western sanctions that have hit demand in Europe. Official sanctions and self-sanctioning by European buyers have hammered demand for Urals in its traditional market, but Asian buyers have stepped in to keep export flows unaffected. The ports of Primorsk and Ust-Luga will load a total of 7 million tonnes of Urals in May, in line with the initial plan, traders said.”
• Looking ahead, the weekly DoE inventory data will cross later on Wednesday.