CRUDE WRAP: WTI (V6) SETTLES USD 0.33 HIGHER AT 84.39/BBL; BRENT (V6) SETTLES USD 0.60 HIGHER AT USD 91.62/BBL
Crude prices edged higher despite unexpected U.S. inventory builds. A planned 'new passage' in the Strait of Hormuz by Iran and Oman emerged as a key geopolitical focal point.
News detail
The crude complex saw slight gains on Wednesday in light geopolitical newsflow. While US/Iran updates were fairly sparse, the most notable update was arguably an Iranian official remarking that a 'new passage' in the Strait of Hormuz will soon be announced in a joint statement with Oman. In the weekly EIA data, which saw modest downside in benchmarks, crude and gasoline stocks saw unexpected builds, while distillates saw a larger draw than anticipated. The US SPR fell by 5.3mln barrels to 293.4mln. Overall, crude production was up 25k bbls W/W to 13.83mln. In the private inventory figures, crude saw a slight draw. During the day, crude saw two-way trade before seeing a bout of weakness into settlement, albeit on nothing headline-driven. For the record, little move was seen on FOMC Minutes. WTI traded between USD 83.45-85.84/bbl and Brent USD 90.40-92.81/bbl.
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