Mid-Day Oil Summary: Crude Retreats

Crude markets are pulling back today with front month Brent falling to the lowest since 15 February weighed on by a higher US dollar as well as ongoing uncertainty over OPEC+ production plans and global demand growth. However, crude time spreads are holding at the highest since October suggesting tight market conditions.

• Brent APR 24 down -0.5% at 81.9$/bbl
• WTI APR 24 down -0.6% at 76.6$/bbl
• Gasoil MAR 24 down -0.2% at 836.25$/mt
• Brent APR 24-MAY 24 down -0.05$/bbl at 0.79$/bbl
• The day delayed API oil inventory data is due at 16:30 ET ahead of the EIA Weekly Petroleum Status Report tomorrow.
• Russia and Venezuela have agreed to increase the pace and volume of cooperation in the field of oil production according to Russian Foreign Minister Sergey Lavrov following his meet with Venezuelan Foreign Minister Yvan Gil Pinto this week.
• Members of the Petroleum Facilities Guard (PFG) at the Al-Zawiya refinery announced to shut the refinery and the Mellitah and Misrata oil complexes in a protest demanding their financial dues according to the Libya Observer.
• Prompt time spreads in the Dubai futures market rose almost to the highest in three months on 20 February, underlining bullish sentiment in the oil complex and tightness of sour crude supplies from the Middle East for the April loading cycle according to S&P Commodity Insights.
• Chinese refiners are pulling in more Russian Sokol barrels, as Indian buyers reduce intake over sanction fears and pricing according to Bloomberg.
• The Middle East conflict and attacks on shipping in the Red Sea have resulted in increased shipping costs and supported refining margins. US diesel cracks however continue to pull back amid demand concern, easing US refining outages from the high in Jan and with a ramp up in Middle East refining capacity.
• US PADD 3 clean product exports remain strong despite heavy reported maintenance levels according to Vortexa, posting an 11% increase over the first 20 days of Feb vs the seasonal average.
• US refiners see modest US demand gains and relatively tight markets in the US for 2024 despite new refining capacity later in the year according to Bloomberg.
• Oil product stockpiles at the UAE’s port of Fujairah declined by 13% in the week ending 19 February to 16.648mn barrels, the largest weekly drop in seven months, according to data from the Fujairah Oil Industry Zone.