CRUDE WRAP: WTI (N6) SETTLES USD 5.89 LOWER AT USD 98.26/BBL

The crude complex tumbled on Wednesday, amid a couple of constructive US/Iran remarks. Firstly, and starting the tumble lower, was Al Hadath reporting that the Pakistani Army Chief may visit Iran tomorrow to announce achievement of final draft of agreement text, and the next round of negotiations will be held in Islamabad after the Hajj season (25-30th May), and sources added work is underway in earnest to put the finishing touches on the text of an agreement between Washington and Tehran. Following this, and aiding the downside even further, was US President Trump stating the US is in the final stages of talks with Iran, and will see what happens. As such, these reports saw WTI and Brent tumble, and hit lows of USD 96.94/bbl and 103.24/bbl, respectively, with a focus on any further remarks. Prior to these remarks, crude already traded on a softer footing, with price action edging lower amid a lack of fresh catalysts. Shortly ahead of settlement, a source close to the negotiating team said that after sending Iran's 14-point text three days ago, the Americans have once again given Iran a text through a Pakistani mediator, which Iran is currently still reviewing, Tasnim reported.

In the weekly EIA data, crude saw a much greater draw than expected, albeit not as deep as the private inventory numbers last night. Distillates saw a surprise build, and gasoline a smaller-than-anticipated draw.