Oil End of Day Summary: Crude Rises Strongly

WTI traded through its first resistance band amid strong gains on the day. Support has been driven by improved China demand expectations, supply cuts during Q2 and with rising geopolitical tensions.

• WTI MAY 24 up 1.6% at 85.09$/bbl
• An OPEC+ ministerial panel is unlikely to recommend any oil output policy at its meeting April 3, five OPEC+ sources told Reuters.
• Russian air defences had thwarted an attempted Ukrainian attack on Tatneft’s 360kbpd Taneco oil refinery in the region of Tatarstan on Tuesday morning.
• Pemex is planning to supply less crude over the next few months, to boost domestic gasoline and diesel output ahead of the presidential election on 2 June.
• Mexico’s crude oil exports fell by 35% on the month to 697kbpd in March.
• US oil production is projected to average 13.2mb/d in 2024 according to Kpler suggesting a year-on-year increase of 330kb/d.
• Venezuelan crude and products exports in March stood at 884.935kbpd, the highest level since early 2020, and up from around 617kbpd in February.
• Trans Mountain will finish building the final segment of the Canadian pipeline in April, according to Reuters.
• The latest rally in global oil prices is driven by tighter supplies rather than driven by an uptick in Chinese demand: Amrita Sen of Energy Aspects.
• Russia’s seaborne crude exports in the week to March 31 rose to the highest so far this year according to Bloomberg ship tracking data amid easing storm disruption.
• Iraq’s crude oil exports fell around 7% in March due to pressure to meet their OPEC+ output cuts, according to Bloomberg.
• Nigerian oil marketers have started to load petroleum products from the 650k b/d Dangote refinery in Lagos, Reuters reported.