Mid-Day Oil Summary: Crude Eases Back

Crude markets have eased back from their early gains, as the market absorbs the widely expected and priced in OPEC+ output cut extension into Q2. Crude is struggling to build on the gains across last week as mixed OPEC compliance and strong non-OPEC output cap upside.

• Brent MAY 24 down -0.5% at 83.15$/bbl
• WTI APR 24 down -0.7% at 79.45$/bbl
• Several OPEC+ countries have announced to extend the additional voluntary output cuts of 2.2mbpd from the end of March to the end of June, according to an OPEC press release.
• OPEC oil production increase by 110kb/d to 26.68mb/d in February according to a Bloomberg survey.
• Iraqi crude oil exports stood at 3.434mbpd in February, up from 3.338mbpd in January: oil ministry.
• A surge in exports from the Americas, primarily from the USGC, helped drive up global oil shipments in Feb.
• Aramco may leave OSPs to Asian customers little change in April according to Reuters. An announcement on the April crude OPSs is expected in the coming days.
• The amount of crude oil held around the world on tankers that have been stationary for at least seven days fell by 2.4% to 68.60m bbl as of 1 March, Vortexa data show.
• Phillips 66 Wood River 356kb/d oil refinery suffered a unit upset and flaring event at 9:50om on the evening of Mar. 3.
• China's imports of crude oil were stronger in the first two months of 2024 than for the same period last year according to Reuters.
• China will raise its retail prices of gasoline and diesel from March 5 by 125 y/mt (~ $17.6/mt) and 120 y/mt respectively.