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Crude Nudges To New Intraday High On Supply Tightening

OIL

Oil prices rallied to new daily high as concern about tightening supplies from Iraq’s Kurdistan region increase, while API data suggest a big drop in US crude inventories ahead of the EIA data release.

  • Supply worries increased after Norway’s DNO announced that it had started shutting down production at its fields in Kurdistan, which averaged an output of 107kbpd last year.
  • Since the shutdown, DNO diverted oil production to storage tanks, but capacity is limited, and tanks could only accommodate a few days’ output.
  • The recent easing of worries over the banking sector also helped sentiment after the sale of assets in collapsed lender Silicon Valley Bank.
  • API data suggest a big drop in US crude inventories ahead of EIA’s numbers this afternoon at 10:30 CET.
  • Brent MAY 23 up 0.9% at 79.35$/bbl
  • WTI MAY 23 up 1.1% at 74.02$/bbl

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