Snapshot: Brent Crude is trading at 74.69, down 3.10% on the day, as a significant drawdown in US crude inventories fails to stem the bearish tide. The primary driver remains the expectation of increased crude flows, particularly from the Middle East, pushing prices to multi-month lows.
- EIA US Crude Stocks (excl SPR) fell by 8,263k bbl as of 12 June.
- Watch for any signs of capitulation in US speculative long positioning ahead of the NY open.
Bias into NY: The path of least resistance remains lower. While the inventory draw is a domestic positive, the overwhelming narrative of improved global supply and easing geopolitical tensions is weighing heavily on Brent, with a break below 74.00 a distinct possibility.