Oil prices reached a trough in early trading today after giving up gains on hawkish comments from Fed Chairman Powell. WTI is down 0.5% from its close to around $89.50/bbl and Brent -0.3% to $95.85. The drawdown in crude (-3.115mn barrels) inventories in the US reported by the EIA confirmed the tightness of the market, which has been underpinning prices.

• WTI is now trading above its 10-, 20- and 50-day moving averages.
• The demand outlook for oil remains uncertain with central banks still hawkish and the top health body in China saying that its Zero-Covid Policy remains its strategy to fight the virus.
• EIA inventories of gasoline fell 1.26mn barrels, the lowest since November 2014, and distillate (used in heating oil and transport fuels) stocks were still at a record low in the US going into winter.