CRUDE WRAP: WTI (Q6) SETTLES USD 2.87 LOWER AT USD 70.34/BBL; BRENT (Q6) SETTLES USD 3.34 LOWER AT USD 73.74/BBL

The crude complex was lower on Wednesday, in what was pretty thin market moving geopolitical newsflow, despite the usual constant flow of headlines. Regarding the Strait of Hormuz, it appears traffic is increasing, given a UN spokesperson said ships have already sailed through under the UN Shipping agency's evacuation scheme, with at least two dry bulk ships and one cargo ship and at least 35 other commercial ships preparing to sail through. Moreover, US Energy Secretary Wright remarked that roughly 72 ships have exited the Strait of Hormuz in the last 24 hours, amounting to 20 ln barrels of oil, and the return to normal oil flows has been delayed due to Iranian mines in the Strait of Hormuz.

Elsewhere, albeit still on geopols, Axios source reports said the first day of the round of negotiations between Israel and Lebanon in Washington ended without any progress, and in a sense, there was even a setback. In addition, Israeli Defence Minister Katz said they will not withdraw from Southern Lebanon, even if the US asks them to do so.

On the supply footing, Russia is expected to ship a record 2.7-2.8mln BPD of crude from its western ports this month, according to three trade and port sources. Furthermore, Moscow Oil Refinery (with a capacity of around c. 11mln metric tonnes p.a.) will be offline for at least six months for repairs after damage from recent Ukrainian drone attacks, sources said.

In the weekly EIA figures, crude saw a deeper draw than anticipated, while gasoline and distillates both saw surprise builds, in line with the private figures last night. Overall, crude production was up 13k W/W to 13.819mln. For the record, WTI traded between USD 69.63-73.18/bbl and Brent USD 73.22-77.00/bbl.