Crude Edges Up Within Range Ahead of US CPI Data and Monthly Market Reports

Crude futures are recovering some ground after falling towards range lows yesterday to 81.08$/bbl ahead of the latest CPI data and monthly reports from OPEC and EIA.

• Brent MAY 24 up 0.5% at 82.59$/bbl
• WTI APR 24 up 0.4% at 78.22$/bbl
• Gasoil APR 24 up 0.5% at 812.75$/mt
• WTI-Brent down 0.04$/bbl at -4.71$/bbl
• Geopolitical risks from Middle East and new attacks on Russia infrastructure are adding to tighter supplies from OPEC+ cuts to support prices. Upside is limited by uncertain demand outlooks in the US and China, strong non-OPEC supply and mixed OPEC+ member compliance with pledged cuts.
• Earlier headlines from Houthis stated they had attacked a US vessel in the Red Sea. The US stated that no damage has been reported and that the missiles did not strike the vessel. This follows further joint US/UK strikes against Houthi controlled areas in Yemen.
• A unit at a refinery in Russia’s Nizhny Novgorod region was on fire after a drone attack overnight. The attack was on the Kstovo industrial zone according to a statement but without giving further details.
  • Brent MAY 24-JUN 24 up 0.04$/bbl at 0.53$/bbl
  • Brent JUN 24-DEC 24 up 0.11$/bbl at 3.44$/bbl
• Crude time spreads have softened over the last week with the prompt Brent spread yesterday falling to the lowest since Feb. 12. The decline in the longer dated Jun24- Dec24 spread has been more muted.
• Diesel and gasoline crack spreads rallied yesterday as further refinery outages could delay the recovery in utilisations rates seen in the last couple of weeks. BP’s Whiting refinery may need another two weeks as of 8 March to fully restore output.
  • US gasoline crack down 0$/bbl at 30.27$/bbl
  • US ULSD crack up 0$/bbl at 33.25$/bbl