Crude Extends Gains on Lower USD

Front month crude is extending gains driven by declines in the USD spot index adding to earlier support from the wider Ukraine/Russia energy infrastructure attacks and renewed Houthi rebel vessel attacks in the Red Sea.

• Brent MAY 24 up 1% at 86.31$/bbl
• WTI MAY 24 up 1.2% at 81.58$/bbl
• USD: A moderate bounce off the lows for major equity benchmarks upon the cash open has added weight to the USD index, which now sits 0.23% lower on the session. While the index is softer (against the grain of higher US yields), it remains well within range of the recovery high, and above 103.99, the short-term outlook remains bullish.
• Ukrainian drones attacked two oil refineries in Russia’s Samara Region on Saturday morning according to Governor Dmitry Azarov.
• The Houthis fired a missile at a Chinese-owned oil tanker called M/V Huang Pu on Saturday, the US Central Command said.
• OPEC+ delegates see current supply curbs as effective according to Bloomberg sources with no recommended changes to supply policy expected at a review meeting next week.