WTI Holds Gains As Cushing 'Tank Bottoms' Loom; US Crude Production At Record High

Oil prices rose this morning due to a reported decline in crude inventories, though negotiations to end the war in Ukraine failed. Prices have fluctuated within a tight range recently, influenced by geopolitical risks and increased global supply. The lack of progress in peace talks and the US's posture towards Venezuela increased risk premiums. API data initially reported a crude draw, but the official EIA report revealed a small crude build. Product inventories, especially gasoline, saw significant increases. Despite falling rig counts, the US is still near record-high crude production. Geopolitical issues continue to cause market volatility, while lower oil prices have driven down gas prices. Markets don't anticipate a quick peace deal in Ukraine, and Russian oil exports remain robust. US sanctions haven't drastically affected Russian oil sales as they are rerouted. While current prices are low, there's discussion about how that will affect the shale producers. The market's uncertainty is further fueled by the ongoing tension between Russia and Ukraine.