Oil End of Day Summary: Crude Highest Since October

Crude prices have climbed to their highest levels since October and broke through their first resistance levels, up around 5% on the week. Support on the day has come from heightened concerns of a military confrontation between Israel and Iran. A wider Middle East conflict could affect key supplies of crude.

• WTI MAY 24 up 0.8% at 87.24$/bbl
• US March payrolls +303k (+214k expected) Unemp rate 3.8% (3.8% expected)
• US oil and gas total rig count was down by one rig on the week to 620, according to Baker Hughes.
• Saudi Arabia raised the official selling price for Arab Light crude for Asia for the second consecutive month in May to $2.0/bbl above the Oman/Dubai average.
• Twenty former US officials urged the Biden administration to reimpose sanctions on Venezuela if Maduro reneges on democratic promises.
• Oil markets are being supported by geopolitical risks highlighted by RBC’s Helima Croft in her latest interview with CNBC.
• The recent uptick in oil prices from Israel/Iran tensions has priced in a little bit too early according to Energy Aspects Head of Research Amrita Sen.
• Not a single sanctioned Russia oil tanker has loaded a cargo since being added to US Treasury’s Office of Foreign Assets Control list.
• An excess of supertankers in the Middle East compared with crude cargoes for the next 30 days expanded to 28%.
• Supertankers signalling the US as their destination increased to its highest level in seven weeks, according to Bloomberg.
• Average oil prices are likely to range between $80-100/b in 2024, according to Gazprom Neft CEO.