Mid-Day Oil Summary: Crude Weakens

The oil market is falling following after further soft data in China which is considered a key for global demand growth this year. Demand concern is limiting the upside from the risks of escalation in the Middle Eastern conflict.

• Brent MAR 24 down -1.1% at 81.92$/bbl
• WTI MAR 24 down -1.1% at 76.93$/bbl
• Countries in the Middle East are awaiting the US response to the killing of three of its service personnel in a drone strike at a Jordanian outpost.
• API weekly oil stock data from late yesterday according to Bloomber: Crude -2.49mbbl, Cushing -2.00mbbl, Gasoline +0.584mbbl, Distillate -2.13mbbl
• The Biden Administration said on Tuesday that energy sanctions relief for Venezuela will be allowed to expire on April 18 if the current lack of progress towards fairer elections remains.
• Yemen’s Houthis fired an anti-ship crude missile toward the Red Sea on Tuesday 11:30 PM (Sanaa time), which was shut down by the USS Gravely warship, the US Central Command said via X.
• The EU is aiming to launch a naval mission to help commercial ships pass the Red Sea from February according to the bloc’s foreign affairs chief Josep Borrel. It still awaits member approval.
• Saudi Aramco may raise the price for its flagship Arab Light crude to Asia in March by 30ct-70ct/bbl, as increasing geopolitical risk has supported global oil prices according to a Reuters survey.
• A Libyan crude loading program shows Sharara is expected to export six cargoes totalling 130kb/d in February compared to just 41kb/d in January according to Bloomberg.
• Russia’s Deputy PM, Alexander Novak, said he expects the discount on Russian oil vs global benchmarks to start going down again soon based on Tass reports.