CRUDE WRAP: WTI (V6) SETTLES USD 0.13 LOWER AT USD 82.23/BBL; BRENT (X6) SETTLES USD 0.33 LOWER AT USD 86.94/BBL

The crude complex was choppy, settling little changed as headlines included both geopolitical escalatory and de-escalatory updates. After settlement on Tuesday, downside in oil was seen as a Russian outlet, Ria, reported that a ceasefire between the US and Iran has been agreed upon, and it includes free navigation in the Strait of Hormuz and will be announced in the coming days. Since this report, we have had nothing similar, but it sparked notable downside throughout overnight and European trade. Benchmarks hit session lows in the European morning, potentially as traders got to their desks and reacted to the news. Today, WTI and Brent saw upside as a Senior Iranian Official stated that an agreement with Oman on the Strait of Hormuz has not yet been finalised, and they are still working on an agreement. Moreover, further gains were seen in the US afternoon as BBG TV reported that Russian President Putin is planning an escalation on Ukraine and sees talks as fruitless. In terms of the weekly EIA data, crude saw a slightly smaller build than anticipated, while gasoline and distillates both saw a larger draw than forecasted. Overall, weekly crude production rose 13k to 13.843mln, with US SPR falling to 289.7mln from 293.4mln. For the record, WTI traded between USD 79.62-82.02/bbl and Brent USD 84.56-86.65/bbl.