Mid-Day Oil Summary: Crude Reverses Gains

Crude reversed earlier gains to trade lower on Monday amid thin trading due to Europe’s Easter holiday. Front month crude edged higher earlier in the session with slightly improved Chinese manufacturing PMI data and a weaker US dollar.

• Brent JUN 24 down 0.3% at 86.74$/bbl
• WTI MAY 24 down 0.2% at 82.97$/bbl
• China’s manufacturing PMI of 50.8 in March showed the economy has made marginal improvements after rising above the 50 mark for the first time in six months, according to Wen Tao, analyst at the China Logistics Information Centre.
• Saudi Aramco may raise the Arab Light OSP to Asia in May by $0.20-0.30/bbl according to a Reuters survey of six refining sources.
• The amount of crude oil held around the world on tankers that have been stationary for at least seven days declined by 19% last week to 67.10m bbl as of March 29, Vortexa data show.
• US crude oil production in January stood at 12.533mbpd, down by 762kbpd on the month and below the EIA STEO forecast, data from the EIA Petroleum Report showed.
• The UAE’s Upper Zakum crude exports declined sharply last month after ADNOC diverted more supply to its own refinery, Ruwais, and instead boosted exports of Murban crude, sources told Reuters.
• Russia’s Deputy PM Alexander Novak said on Friday there is no need for a Russian ban on diesel exports despite Ukraine’s attacks on Russian oil refineries.
• Lukoil expects to restore output at its 340kbpd Norsi refinery in one or two months, Russia’s Deputy PM Alexander Novak said on Friday.
• CDU utilization rates at Chinese independent refinery in Shandong Province were at 53.56% in the week to 28 March, down from a 22-month low the week prior, with rates expected to remain low in the coming weeks according to OilChem.
• A fire started at Rompetrol Rafinare’s Petromidia refinery on the Black Sea coast earlier in the day on 29 Friday was extinguished, Digi24 TV station reports, cited by Bloomberg.
• Russia is planning to reduce diesel exports from its Baltic and Black Sea ports to 2.29mn tons, or 569kbpd, in April, down from 724kbpd in March, Kpler data showed, cited by Bloomberg, as crude-processing rates fell to a 10-month low after Ukrainian attacks on Russian oil refineries and seasonal maintenance.
• Parkland’s 55kbpd Burnaby refinery returned to normal operations on 29 March after an unplanned shutdown on 12 January due to extreme cold, the firm said.
• Germany’s Miro refinery in Karlsruhe shut the 130kbpd CDU and 55kbpd VDU on 28 March according to WoodMac.
• US gasoline and diesel cracks extended the earlier pullback with more pronounced losses in diesel cracks as US refineries are returning from seasonal maintenance.
  • US gasoline crack down 0.4$/bbl at 30.71$/bbl
  • US ULSD crack down 0.9$/bbl at 26.08$/bbl