WTI & Brent trade at virtually unchanged........>

OIL: WTI & Brent trade at virtually unchanged levels at writing, sticking to

tight ranges during Asia-Pacific hours.

- This comes after both metrics settled higher on Monday, supported by increased

tensions in the Gulf, centring on Iran's seizure of a British tanker, although

both WTI & Brent finished the first session of the week shy of best levels.

- Worth highlighting that the IEA noted that emergency stocks of crude are large

enough to cover any disruptions stemming from issues surrounding the Strait of

Hormuz for "an extended period." Elsewhere on the supply front, Energy Intel

suggested that Saudi Aramco will look into re-opening the Saudi-Iraq pipeline,

while Libya's Sharara oilfield resumed production, at levels which represent

~50% of its capacity, after declaring force majeure over the weekend. Meanwhile,

Russian Pres. Putin proposed the "introduction of a moratorium on new state

support measures for the development of Russian oilfields until inventories are

completed." We also learnt that the U.S. is imposing new sanctions against a

Chinese firm for transporting Iranian crude.

- API inventory estimates will garner participants' attention later today.