Oil End of Day Summary: Crude Finds Support

Crude markets are ending the day higher after a slightly above-expectation US stock draw in the latest weekly EIA petroleum data. The market remains resilient to the geopolitical risk associated with Israel-Hamas ceasefire talks.

• WTI JUN 24 up 0.7% at 78.95$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending May 03: Crude stocks -1,362 vs Exp -1,066, Crude production 0, SPR stocks +947, Cushing stocks +1,880
• Crude stocks in ARA fell by 3.3mn bbls or 6.1% in the week ended May 3 to 50.9mn bbls according to Genscape.
• Russia cut its crude output by less than pledged in April, exceeding the voluntary target agreed in March with OPEC+, Bloomberg said.
• Iran plans to raise its oil output by 300-400kbd this year according to Iranian Oil Minister Javad Owji in comments on state TV.
• Ukraine struck a Russian oil storage facility in Lugansk with a missile strike early on Wednesday.
• The Greek navy May 8 has extended an advisory banning STS activity off its coastline in the southern Peloponnese until May 19, a move aimed at deterring STS transfers of Russian oil, Reuters said.
• Russia’s growing “shadow fleet” of tankers transporting oil outside the G7 price cap is being refuelled in EU waters, prompting fresh calls for a further clamp down, Platts said.
• Morgan Stanley expects Brent to average $90/bbl by Q3 2024 and is removing the $4/bbl geopolitical risk premium from its Brent price forecasts.
• Mexico’s President Andres Manuel Lopez Obrador (AMLO) said May 8 that Mexico has sufficient oil reserves for the next 25-30 years, as reported by El Universal.
• MNI COMMODITY WEEKLY: Canadian Oil Producers Bullish on TMX Price Impact: Full piece here: https://enews.marketnews.com/ct/x/pjJscQmAlO8I6a8zJBAlEg~k1zZ8KXr-kA8x6nOUpWnptIPjO1OcQ