Mid-Day Oil Summary: Crude on the Rise

Crude front month has extended gains trading through technical resistance levels as IEA suggest oil markets face a supply deficit due to the OPEC+ cuts.

• Brent MAY 24 up 0.5% at 84.49$/bbl
• WTI APR 24 up 0.7% at 80.31$/bbl
• UKTMO received an alert of an incident 50NM southeast of Aden, Yemen at 04:18UTC.
• OPEC+ cuts are expected to result in a meaningful deficit for most of this year providing support for prices, according to a note from HSBC via Bloomberg.
• The IEA raised its oil demand growth forecast for this year on a more positive outlook for the US as well as bunker demand growth because of Red Sea diversions.
• OIES have raised the Brent forecast from $82.1/bbl to $82.9/bbl in 2024 with 2025 at $79.4/bbl due to extended OPEC+ cuts and robust non-OECD demand according to the latest Oil Monthly report.
• The US has awarded contracts to three companies to buy 3.25m bbl of domestic sour oil in August to refill its Strategic Petroleum Reserve,
• The highest bid in the US auction for shares of Venezuela-owned Citgo Petroleum assets was $7.3bn – only covering a third of court approved claims according to Reuters sources.