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WTI Looks Below $100 In Asia

OIL

WTI has managed a marginal extension through Thursday’s low during Asia-Pac dealing and last sits a little over $0.50 softer on the day, just below $100 (after the level provided support on Thursday), while Brent futures have also extended Thursday’s move lower, losing a handful of cents, with $104.00 providing a bit of a floor for now.

  • A reminder that Thursday’s sharp losses were a product of the sizeable U.S. SPR stock release initially touted in Asia-Pac hours, and later confirmed by the Biden administrations (1mn bpd set to be released over a ~6 month period), with the prospect of further action from the IEA later today (the Biden admin have flagged the potential for another 30-50mn bbl release on the part of the IEA).
  • While most of the sell-side acknowledge a fairly short-term downside risk/bias to prices on the above, most continue to flag the structural support for crude, especially with OPEC+ maintaining their gradual approach when it comes to providing an uptick in production.
  • Elsewhere, Russian energy pricing matters, the continued Russia-Ukraine conflict and the resumption of talks between the two nations (in an online format), set for Friday, provide plenty of other headline risk to keep an eye on.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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