Lower On Fading EU Sanction Worry, Ongoing Outbreak In China

WTI is ~-$0.30 and Brent is ~-$0.50, sitting ~$2 above Thursday’s trough at writing. Both benchmarks appear headed for their second straight lower weekly close (and on track for a fourth consecutive lower daily close), and trade a touch above levels last witnessed before the Russian invasion of Ukraine.

• Earlier worry surrounding the likelihood of an EU ban on Russian crude imports has eased from highs seen earlier in the week, with well-documented German and Hungarian-led opposition to the measure remaining intact for now. A note that BBG source reports have also pointed to Russian Sokol crude finding more buyers in Asia, with cargoes for May currently sold out.
• Looking ahead, the EU is due to soon pass a (phased) ban on Russian coal that RTRS source reports have suggested will take full effect in mid-August, while the EU’s top diplomat Borrell has said that the bloc’s FMs will meet on Apr 11 to discuss the possibility of sanctions on Russian crude.
• Elsewhere, concern re: China’s energy demand have intensified, as nationwide daily COVID case counts continue to rise. Authorities in Shanghai reported over 20K fresh cases (both symptomatic and asymptomatic) for Apr 7 with the city’s lockdown remaining indefinite for now, keeping most business and factories shuttered.