The May Brent futures contract continued spiralling downwards this afternoon with prices tumbling from $86.70/bbl around noon to $85.80/bbl at 17:15 GMT (time of writing). EIA stats for the week to Mar 15 highlighted a 1.95mbbls draw in US crude oil inventories, surpassing median estimates of a 150kbbls draw. Gasoline stocks saw a 3.31mbbls draw against an expected 2.8mbbls draw, whilst distillates stocks recorded a build equalling 624kbbls against expectations of a draw. In other news, market participants will also be on the lookout for the US Fed’s decision on interest rates due at 18:00 GMT. While the Fed is expected to keep rates unchanged, sentiment regarding early rate cuts is still tepid with inflation still above the Fed’s 2% target. Finally, the front-month and six-month Brent spreads are currently at $0.60/bbl and $4.04/bbl, respectively.
