Mid-Day Oil Summary: Crude Edges Lower

Crude markets are edging lower today after yesterday’s rally that recovered much of the losses from late last week. Ongoing Middle Eastern tensions and Red Sea attacks continue to add to supply concerns, while risks to demand growth and high US output are limiting upside.

• Brent APR 24 down -0.4% at 82.18$/bbl
• WTI APR 24 down -0.4% at 77.24$/bbl
• Brent crude prices are expected to average $80/bbl in 2024 and 2025 with a balanced market according to BofA.
• OPEC+ is expected to announce in early March the rollover of the voluntary production cuts through June at least, RBC head of commodity strategy, Helima Croft, said in a note.
• The US has capitalised on shipping disruptions in the Red Sea to become the biggest supplier of crude, diesel and LNG for Europe in recent months according to Kpler.
• Russia’s oil-pipeline operator Transneft plans to expand oil reservoir tank capacity in Kozmino according to Bloomberg based on a government decree published on a legal database.
• South Korea’s S-Oil restarted a CDU at the refinery complex in Onsan on Tuesday after a fire late last week, sources told Reuters.
• China's state-owned refineries intend to raise their refined oil exports by 20.69% from February’s planned volumes of 4.2 million tonnes in March according to OilChem.
• Russian fuel oil shipments towards Africa are set for a record high in February according to Kpler.
• Works at BP’s 435kbpd Whiting, Indiana, refinery are still ongoing with various contractors still onsite and output may still be partially effected, GasBuddy said via X.
• Gasoline cracks have found some added support after Russia’s Prime Minister Mikhail Mushustin approved a six-month ban on gasoline exports starting 1 March according to RBC daily.
  • US gasoline crack up 0.3$/bbl at 30.4$/bbl
  • US ULSD crack down -0.6$/bbl at 35.73$/bbl