Crude Stabilises During Session After Sharp Fall Wednesday

MNI (Australia) - Oil prices have been trading in a narrow range during the APAC session after declining sharply on Wednesday. They are down over 8% so far this year as increased talk of recession, Fed determination to rein in inflation, China’s rising Covid cases and thin liquidity have all weighed on the black gold.

• Crude prices are up around a percent so far today with WTI trading around $73.65/bbl and Brent $78.60 after reaching lows earlier of $73.11 and $78.16 respectively.
• US API inventory data showed a crude build of 3.3mn barrels in the latest week after a draw of 1.3mn. There was also an increase in gasoline stocks of 1.2mn but a 2.4mn drawdown in distillate. Futures spreads are implying that there is plenty of supply in the short term.
• Later today there is US ADP employment for December before payrolls print on Friday. There are also jobless claims, the trade balance and the final December PMIs today. There is US EIA inventory data as well.