Mid-Day Oil Summary: Crude Eases Back

Crude markets are holding relatively steady today as the market assesses the Middle East conflict escalation risks and increasing attacks on Russian energy infrastructure against demand concerns amid a weak property sector in China.

• Brent MAR 24 down -0.3% at 82.16$/bbl
• WTI MAR 24 down -0.2% at 76.61$/bbl
• Markets are waiting for the US response following the attack on its troops stationed in Jordan over the weekend while negotiators are working on a “three-phase” ceasefire between Israel and Hamas including the release of hostages.
• The number of tankers diverting on longer voyages around the Cape of Good Hope has risen to 100 from the previous week, according to OB.
• The US began reinstating sanctions on Venezuela on Monday according to a Reuters administration source – adding the 6-month waiver on oil and gas sanctions could be allowed to expire.
• Saudi Aramco could maintain the Arab Light official selling price to Asia unchanged in March according to the median estimate of a Bloomberg survey of seven refiners and traders.
• Saudi Arabia’s Energy Ministry has told Saudi Aramco to maintain its maximum crude capacity at 12mbpd not to increase its capacity to 13mbpd by 2027, as previously planned, according to S&P Commodity Insights.
• The 590kbpd Trans Mountain Pipeline expansion will now be completed in the second quarter at the earliest due to complications while pulling a pipe through a tunnel section according to the company.
• Chinese independent refiners are reluctant to buy Iranian crude in February as the issues over pricing terms run into a second month according to Reuters sources.
• APIKUR has requested US Congressional action to help persuading the Iraqi federal government to resume oil exports from the Kurdistan region, it said in a letter to the US Congress.
• Russia’s four week average seaborne crude exports fell by about 250kb/d last week to about 3.09mb/d according to Bloomberg and about 200kbpd below Russia’s Q1 pledged target.
• India’s diesel exports to Europe are down by around 80% on the month to 33.4kbpd-58kbpd this month, Kpler, LSEG and Vortexa ship-tracking data showed, tracking the lowest in two years, as Red Sea disruptions shored up freight costs.
• Neste is ramping down its Porvoo refinery, Finland, ahead of strikes.
  • US gasoline crack down -1.5$/bbl at 16.89$/bbl
  • US ULSD crack down -1.1$/bbl at 39.58$/bbl