Snapshot: WTI crude is holding around $102, supported by the IEA’s report of a record draw in global oil inventories. Focus shifts to the 08:30 ET PPI release, which could influence risk sentiment and, indirectly, oil demand expectations. Positioning remains moderately long, but not at levels indicating imminent squeeze risk.
- Watch for a break above $103 resistance, which could trigger further upside.
- Downside risk remains tied to broader risk-off sentiment if PPI prints hotter than expected at 08:30 ET.
Bias into NY: Bullish while the IEA’s undersupply narrative remains in place, targeting $105 if risk sentiment holds. We see limited downside given the current supply constraints and relatively contained USD strength.