OIL
European sweet-sour spreads continue to remain supported, with the European medium sour Johan Sverdrup having hovered around a slight premium to Dated Brent, Kpler noted.
- John Sverdrup’s strength comes at a time when European crude demand is coming increasingly under pressure amid a rise in seasonal refinery maintenance.
- Around 1.5m b/d of primary distillation capacity is to remain offline this month, according to IIR.
- Some support for medium sweets has been stemming from a decline in heavier exports from the Middle East, keeping the European medium-crude market tighter.
- EU refinery maintenance is forecast to average 1.7m b/d in March and 1.9m b/d in April, capping the continent’s crude demand and pressure Johan Sverdrup.
- An anticipated rise in Brazilian crude exports could also add pressure, amid several new FSPOs.
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