Mid-Day Oil Summary: Crude Extends Gains

Crude prices are extending the recent rally with front-month Brent crude trading well above $90/bbl at the highest since 23 October. Rising Middle East tensions, OPEC+’s continued output cuts and some signs of improved demand from economic data in the US and China are supportive.

• Brent JUN 24 up 0.4% at 91$/bbl
• WTI MAY 24 up 0.2% at 86.77$/bbl
• US nonfarm payrolls are due for release at 08:30 ET. Bloomberg consensus sees nonfarm payrolls growth of 213k in March after a strong 275k in Feb.
• Oil markets are being supported by geopolitical risks highlighted by RBC’s Helima Croft in her latest interview with CNBC.
• China’s seaborne crude imports came in above 10mn bpd in March – the first time since October of last year according to Vortexa.
• The Western Canada Select (WCS) heavy crude differential versus WTI traded in the $12 range on Thursday – little changed from the previous session.
• The reduction in Pemex’ crude oil export will be gradual as the firm is raising its refining capacity with the start up of the new 340kbpd Dos Bocas refinery, Mexican President Andrés Manuel López Obrador said Thursday, cited by Dow Jones.
• Not a single sanctioned Russia oil tanker has loaded a cargo since being added to US Treasury’s Office of Foreign Assets Control list according to Bloomberg.
• Iraq’s crude oil exports stood at 3.423mbpd in March, compared with 3.434mbpd in February, oil ministry data seen by Iraq Oil Report showed.
• TotalEnrgies’s 219kbpd Donges refinery will restart a unit on Friday, the company said in a statement.
• US Diesel cracks have seen a recovery this week up from 25.75$/bbl to 29.2$/bbl amid ongoing Russia refining disruption and a pause in the recovery in US utilisation rates. Demand is weak but there are some indications that the fuel could see increased demand from the manufacturing sector.
  • US gasoline crack up 0$/bbl at 30.82$/bbl
  • US ULSD crack up 0.2$/bbl at 29.17$/bbl