Mid-Day Oil Summary: Crude Slides Ahead of Fed Rate Decision

Crude futures and spreads extended a pull back today amid strength in the US dollar ahead of the US Fed rate decision later today. Front month Brent recovered slightly from an intra-day low of $86.22/bbl.

• Brent MAY 24 down 0.7% at 86.77$/bbl
• WTI MAY 24 down 0.8% at 82.07$/bbl
• The US Fed rate decision is expected at 14:00 ET with the central bank expected to leave rates on hold with analyst expectations for a June starting point for rate cuts.
• API weekly oil stock data: Crude -1.5mbbl, Cushing +0.3mbbl, Gasoline -1.6mbbl, Distillate +0.5mbbl
• The EIA weekly petroleum inventory data for the week ending Mar. 15 is due for release this afternoon at 10:30ET (14:30GMT).
• Oil prices are expected to break above the $70-$90/bbl range if the US Fed cuts interest rates in coming months, according to Jeff Currie at Carlyle Group LP in a Bloomberg interview.
• The Canada Energy Regulator said Tuesday it ordered Trans Mountain Expansion Pipeline (TMX) to stop work on part of its expansion project.
• Russian crude exports have slipped back as maintenance work at the Baltic port of Primorsk and strong winds around Kozmino hit exports according to Bloomberg vessel tracking.
• Chinese crude oil imports in February were mostly stable on the month at 44.14mn tons, but up by 8.4% year on year, with more sanctioned barrels arriving in China, official customs data showed.
• US State Department Official Geoff Pyaat said on Tuesday he plans to meet Latin American leaders this week to discuss fair Venezuelan elections as well as oil sanctions.
• India’s Bharat Petroleum has signed a four month deal with BP for the supply of 1mbbl per month of US WTI Midland crude according to Bloomberg sources.
• Chinese oil products exports in February declined to 4.2mn tons, down from 4.62mn tons in January and 32.4% lower on the year, official customs data showed.
• Chinese fuel oil imports declined by around 33% on the month to 1.442mn tons in February, official customs data showed.
• Kuwait’s three refineries are currently processing 1.4 mn bpd of crude daily and expect to raise rates that to 1.6 mn bpd “soon” according to Kuwait Petroleum chief, Sheikh Nawaf Al-Sabah on Tuesday.
• Kuwait’s KPC has issued a semi-term tender offering HSFO for loading between April to June according to Reuters sources.
• Russia is increasing fuel production and eliminating logistics constraints following oil refinery attacks by Ukrainian drones in recent weeks according to Energy Minister Nikolai Shulgino.
• UAE's Port of Fujairah oil product stockpiles rose 10% to an eight-month high in the week ended March 18 according to Fujairah Oil Industry Zone data.
• Petronor’s Bilboa refinery, Spain, is restarting a visbreaker according to a company statement.
  • US gasoline crack down 0.3$/bbl at 31.91$/bbl
  • US ULSD crack down 1.3$/bbl at 31.11$/bbl