Mid-Day Oil Summary: Crude Retreats

Crude is easing back but remains within yesterday’s range with the potential for delayed US interest rate cuts amid persistent inflation, a higher US dollar and slow growth in China weighing on prices. The Brent prompt time spread has however today rallied to the highest since October ahead of the Apr24 contract expiry tomorrow.

• Brent APR 24 down -1% at 82.81$/bbl
• WTI APR 24 down -1.1% at 77.97$/bbl
• Brent APR 24-MAY 24 up 0.06$/bbl at 1.05$/bbl
• API weekly oil stock data: Crude +8.4mbbl, Cushing +1.8mbbl, Gasoline -3.3mbbl, Distillate -0.5mbbl
• ARA crude stocks rose 5.5% or 2.6mn bbls for the week ended February 23 to 49.5mn bbls according to Genscape
• The EIA weekly petroleum inventory data for the week ending Feb. 23 is due for release this afternoon at 10:00ET (15:30GMT).
• China’s oil demand is expected to grow by 1% this year to 764mn tons, according to a CNPC report.
• OPEC+ is expected to extend the current crude production cuts beyond 1 April according to 55% of the eleven refining industry participants in South Korea and Japan surveyed by S&P.
• Oman’s recently inaugurated Duqm refinery may start processing more crude grades from the end of the year and studies are currently underway according to its CEO David Bird speaking with Reuters.
• Oil product stockpiles at the UAE's Port of Fujairah increased 13% on the week to 18.734mn barrels as of 26 February, despite a decline in middle distillates stocks, according to the Fujairah Oil Industry Zone and shipping data.
• Valero will carry out maintenance at its Pembroke refinery in the UK in September, sources told Bloomberg.
• The Americas will increasingly buy gasoline from Asia, as exports from the US Gulf Coast are expected to be limited, Sparta Commodities said in a note.
• US gasoline margins have risen to the highest since August with support from unplanned refinery outages combined with a heavy maintenance season. The front month US gasoline cracks spread has risen to over $30/bbl this week amid tighter supplies although the diesel crack has fallen since mid February.
• Diesel and gasoline cracks have eased back despite API data last night showing another oil product draw.
• An OPIS US gasoline demand survey indicates levels of about 8.4mn bpd last week. OPIS referred to the number as growing vs the week prior but lackluster vs historical levels.
  • US gasoline crack down -0.5$/bbl at 29.63$/bbl
  • US ULSD crack down -0.7$/bbl at 33.62$/bbl