Mid-Day Oil Summary: Crude Edges Lower

Crude markets reversed earlier gains to trade lower on the day weighed on by a stronger US dollar index and increased Russian crude oil supplies in April. Losses are limited as focus remains on geopolitical risks in the Middle East with any further escalation raising concerns for oil supplies from the region.

• Brent JUN 24 down 0.4% at 89.7$/bbl
• WTI MAY 24 down 0.5% at 84.99$/bbl
• Israeli military officials said the country has no choice but to respond to the attacks by Iran at the weekend despite calls from EU and US to avoid an escalation.
• The Israeli war cabinet is set to meet for the third consecutive as it seeks consensus on the nature of its response to Iran's missile/drone attack on 13 April.
• It’s too soon to fade the Iran-Israel tension story at present despite the lack of upwards price action for oil this week according to RBC’s head of commodity research Helima Croft speaking with CNBC.
• The muted reaction in oil prices to the Iran strike on Israel suggests the market believes an escalation into a broader regional conflict is unlikely according to HSBC.
• China apparent oil demand increased by 1.03% year on year in March to 14.75mbpd, Customs General Administration data showed, cited by Bloomberg.
• The U.S. does not intend to renew the special license granting Venezuela eased energy sanctions unless progress is made towards free and fair elections a State Department spokesperson said on Monday.
• Russia’s seaborne crude exports rose to an 11-month high in the second week of April according to Bloomberg vessel tracking.
• India’s diesel and gasoline sales declined in the first half in April compared to March levels, data from state-run Indian Oil and Bharat Petroleum and Hindustan Petroleum showed.
• Shell’s 404kbpd Pernis refinery will complete planned maintenance this month, with units restarting this week, the firm said.
• US diesel and gasoline cracks fell yesterday with the diesel spreads falling to the lowest since about June 2023. Gasoline cracks were down with a decline in weekly gasoline demand but are seeing some support today.
• Marathons 365kbd Los Angeles refinery had a process upset early on Monday that led to flaring of sulphur dioxide according to a filing.
  • US gasoline crack up 0.3$/bbl at 31.83$/bbl
  • US ULSD crack down 0.3$/bbl at 25.76$/bbl