Oil End of Day Summary: Crude Down Slightly

Crude prices are trading lower on the day, although have tapered their losses amid continued tensions in the Middle East between Israel and Iran.

• WTI MAY 24 down 0.2% at 85.5$/bbl
• The G7 nations condemned Iran’s attack on Israel on Saturday, aiming for further sanctions but notably not mentioning oil.
• Axios reporting that Israeli Defence Minister Yoav Gallant told his US counterpart Lloyd Austin III that "Israel has no choice but to respond to the unprecedented missile and drone attack launched by Iran over the weekend"
• The Iranian attack on Israel was well known about prior to its launch, leading to a lack of price impact on Monday: Energy Aspects Head of Research Amrita Sen.
• Iran’s strike on Israel is not expected to disrupt oil markets: DNB Markets' Helge Andre Martinsen
• US oil output from the main shale-producing regions will rise in May to a five-month high, according to the EIA’s monthly drilling report.
• The escalation in tensions between Israel and Iran raises questions as to whether the flow of Iranian crude oil to China’s independent refiners can continue unabated: Platts
• Citigroup has raised its oil price forecast with the Q2 Brent average up from $74/bbl to $82/bbl and a 3-month WTI price target up from $75/bbl to $83/bbl.
• The flurry of drone and missile attacks by Iran on Israel, if escalated, could significantly influence trade flows via the Strain of Hormuz, according to Platts.
• Nigeria released new rules that will compel its oil producers to sell crude to domestic refineries to reverse its reliance on imports, according to Bloomberg.