WTI & Brent trade ~$0.20 higher on the day,.....>

OIL: WTI & Brent trade ~$0.20 higher on the day, shy of the post-settlement

highs that were inspired by reports pointing to a much larger than exp. drawdown

in headline crude stocks in the latest API inventory estimate. The reports also

pointed to a small drawdown in Cushing stocks, a surprise build in gasoline & a

larger than expected build in distillates.

- Iranian tensions continue to headline, with the state's Dep. Foreign Minister

noting that it will not allow any disturbance in shipping in the Strait of

Hormuz. This came after France, Italy, the Netherlands & Denmark supported a UK

initiative to ensure safe shipping through the Strait. Elsewhere Tuesday, French

off'ls told Iran's Dep. Foreign Minister that Tehran has to return to compliance

with the JCPOA & take necessary steps to ensure the de-escalation of tensions.

- Also worth highlighting that Russian oil production has exhibited signs of

recovery, with avg. production up to 11.06mn bpd month to date (as of July 22),

based on documents seen by BBG. Also on the supply side, Libya's Sharara

oilfield is producing at full capacity after force majeure was lifted.

- DoE inventory data will be the focal point for participants today.