Oil prices have roller-coastered overnight - higher on new Houthie attacks in the Red Sea and now lower on reports that a draft deal approval in imminent.
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A Houthi military spokesperson said the group would escalate attacks on Saudi vessels in the northern Red Sea — the latest workaround for the kingdom’s exports to avoid the perilous Bab al-Mandab Strait off Yemen’s coast to the south. Exports from the Red Sea have become a vital lifeline for Saudi Arabia since the Iran war choked off shipping from the Persian Gulf.
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Axios reported the US, Iran and Oman were nearing an interim, 60-day accord to reopen the waterway, with Washington aiming for an announcement later Wednesday. The proposal would involve no tolls or fees, with inbound vessels using a northern lane, and outbound traffic a southern one.
But in the short-term, and especially in light of the recent decline in refined product prices, all eyes are on the official inventory and supply data (which API reported a crude build and diesel draw).
API
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Crude +2.7mm (-2.1mm exp)
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Cushing +2.4mm
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Gasoline +200k
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Distillates -1.2mm
DOE
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Crude +2.48mm (-2.1mm exp)
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Cushing +2.36mm - biggest build since March
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Gasoline -1.64mm
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Distillates -3.47mm
After last week's huge crude draw, this week saw a modest (2.48mm) build in inventories while Cushing stocks soared 2.36mm barrels (the most since March). Products saw sizable draws...
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