Americas Daily Oil Summary: US to Approve E15 Gasoline Expansion

The Biden administration will approve a request from several Midwest states to allow year-round sales of gasoline containing 15% ethanol, according to Reuters. The start-date will likely be pushed to 2025.

• US diesel cracks are easing back to their lowest level since late December, having plummeted since mid-February. Gasoline spreads are also showing similar weakness, easing back to the lowest levels since October.
• Exxon president of upstream Liam Mallon told Bloomberg TV that Exxon expects Guyana to compete with Permian on oil production. Mallon also said that Exxon is “not going anywhere” despite Venezuela’s threat towards Guyana.
• Guyana’s President Irfaan Ali said that Guyana must develop oil and gas resources but will work with Venezuela to prevent escalation.
• Russia and Venezuela agreed to broaden their oil production cooperation, Russia’s Foreign Affairs Minister Sergei Lavrov told Venezuelan state tv during a visit to Caracas.
• A supertanker, the Ligera, carrying 1.7m bbl of Urals crude, arrived today in Venezuela for the first time in five years, according to Bloomberg.
• Greenback: While the USD index remains around 0.20% lower on Tuesday, reflective of the lower US yields, the greenback is now well off session lows as we approach the APAC crossover. The greenback bid over the past few hours coincides closely with the weakness for equities with e-mini S&P briefly extending losses to 1.1% on the day.