WTI comes below $70 - ING

Energy markets came under downward pressure yesterday. ICE Brent fell by 2.35%, while WTI is trading back below $70/bbl, ING's commodity analysts Warren Patterson and Ewa Manthey notes.

Prospects for a peace deal between Russia and Ukraine are improving

"Lingering tariff risks and falling consumer confidence are fueling demand concerns. In addition, prospects for a peace deal between Russian and Ukraine are improving as the US and Ukraine agree on a minerals deal. It could be signed later this week. This would take us a step closer to Russian sanctions being lifted, removing much of the supply uncertainty hanging over the market."

"Meanwhile, American Petroleum Institute (API) data show that US crude oil inventories fell by 600k barrels last week. If confirmed by the EIA later today, it would mark the first decline in US crude oil inventories since mid-January. The market has been expecting a build of around 2.4m barrels."

"Last week's output disruptions in North Dakota might've contributed to the stock decline. As for refined products, the API estimates that gasoline stocks increased by 500k barrels, while distillate inventories fell by 1.1m barrels."