End of Day Oil Summary

Oil prices have edged lower Wednesday, in a second successive session if it holds. Crude markets initially edged higher post EIA data despite a build in US crude inventories supported by a weaker dollar. A Bloomberg survey had expected a small draw while API data had suggested a large build.

• Brent MAY 24 down -0.3% at 86.02$/bbl
• WTI MAY 24 down -0.4% at 81.33$/bbl
• Gasoil APR 24 down -0.6% at 813$/mt
• WTI-Brent down -0.12$/bbl at -4.69$/bbl
• A surprise gasoline build in the US was a bearish factor. “West Coast gasoline stocks dropped 1-million b/d last week and that could fuel a further rally in California and the Pacific Northwest. The rest of the EIA report is fairly routine with a surprising 3.9-million bbl build at the Gulf Coast. Slight slowdown in gasoline exports.” OPIS analyst Tom Kloza said.
• The May Brent contract expires on Thursday.
• JPMorgan maintains a baseline view for Brent prices to reach $90/bbl by May, and $85/bbl in H2 2024 but has the potential to rally to $100/bbl this year.
• Crude inventories in the ARA region rebounded with an increase of 2.535mbbl to 51.62mbbl in the week to March 22 according to the latest Genscape data.
• US/Israel relations remain tense this week as US officials try to stop a ground invasion of Rafah and risk igniting further tensions in the Middle East, that endangers drawing Iran further into the situation, directly or indirectly via its many proxies.
• Russia’s Ryazan refinery is reported to have somewhat recovered after March 13 drone strikes by Ukraine, helping to alleviate some of the pressure on its refining sector after persistent attacks this month. See today’s MNI commodity weekly for more: https://enews.marketnews.com/ct/x/pjJscQaLkusI6a82Jx5zGw~k1zZ8KXr-kA8x6nBWZOjptIPjO1OcQ