OIL MKT DRIVERS: API Report Helps Ease Selloff; China Security

By Alex Longley

(Bloomberg) —

Summary of what’s shaping the oil market on Wednesday: Industry group API was said to report a 5m bbl drop in U.S. crude inventories last week, with official EIA data due later. China raised the security level for its ships in the Strait of Malacca. The dollar weakened intraday.

Crude stockpiles fell 4.97m bbl last week, API was said to report Tuesday

Cushing +882k bbl; gasoline -837k bbl; distillates -1.69m bbl
EIA figures due at 10:30am ET Wednesday, with analysts forecasting a 3m bbl drop in crude inventories

The Bloomberg Dollar Spot Index fell 0.1%, while European equitiesand U.S. index futures were higher
China raised its security warning for ships carrying its flag in the Malacca Strait to its highest level; there was no reason given for the raised alert
India didn’t import any oil from Iran in June as sanctions waivers ended, tanker tracking shows
* Crude storage in Europe’s ARA region fell 0.4% w/w last week
Brent timespreads recovered slightly after coming under pressure in the first two sessions of the week. WTI markers remained weak

To contact the reporter on this story:
Alex Longley in London at alongley@bloomberg.net

To contact the editors responsible for this story:
Alaric Nightingale at anightingal1@bloomberg.net
Brian Wingfield, Stephen Voss