Mid-Day Oil Summary: Crude Drifts Lower

Crude markets are drifting lower today amid a continued easing in the geopolitical risk premium, and some expectations of a build in US stocks last week. This is despite the API showing a stock draw.

• Brent JUN 24 down 0.6% at 87.91$/bbl
• WTI JUN 24 down 0.7% at 82.78$/bbl
• An unexpected draw in US crude stocks in API data yesterday added to the upside support ahead of the update weekly EIA petroleum inventory data later today.
• Backwardation continues to strengthen with the prompt time spread trading back up to the highs seen in early April supported by a market deficit in Q2.
• ARA crude inventories fell 741k bbl or 1.3% in the week ended April 19 to 58.4m bbl according to Genscape.
• The first tanker to load crude from the expanded Canadian Trans Mountain pipeline is expected to load at the Port of Vancouver in the second half of May according to the company but shippers remain concerned over timelines.
• The CPC oil terminal operator has taken one of its three moorings offline for planned repairs it said via a statement Wednesday.
• China will be the main beneficiary of a recent push in US sanctions against both Iran and Venezuela, which should support deeper oil discounts according to Kpler.