Oil End of Day Summary: Crude Surges on Iran Strike Threat

Oil has reversed Its losses to surge After Bloomberg reported that an Iranian missile attack on Israel is imminent. This would widen the ongoing conflict in the Middle East.

• WTI MAY 24 up 1.1% at 86.17$/bbl
• Bloomberg reporting that the US and allies believe, "major missile or drone strikes by Iran or its proxies against military and government targets in Israel are imminent," in retaliation for an Israeli airstrike on an Iranian diplomatic compound in Damascus on April 1.
• MNI: US MAR CPI 0.4%, CORE 0.4%; CPI Y/Y 3.5%, CORE Y/Y 3.8%
• EIA Weekly US Petroleum Summary - w/w change week ending Apr 05: Crude stocks +5,841 vs Exp +688, Crude production 0, SPR stocks +595, Cushing stocks -170
• Saudi Aramco have allocated full contractual crude volumes for May to at least five Asian refiners.
• Crude inventories in the ARA region rose 1.2m bbl in the week ending 5 April to 55.4m bbl, Genscape data show.
• US Defense Secretary Lloyd Austin has warned that Ukraine’s recent attacks on Russian refinery infrastructure are a risk to global oil markets urging a focus on military targets instead.
• Russian oil is trading $15/b above the G-7 price cap, suggesting significant non-compliance: Bloomberg.
• Mexico’s Pemex has lost 20,000 bpd in production after the fire at its Akal-B platform at the weekend according to Reuters citing a source at the company.
• Occidental Petroleum Corp. is due to restart some Gulf of Mexico oil production after being asked to curtail offshore production in late November.
• MNI COMMODITY WEEKLY: Iran-Israel Tensions Return to the Spotlight for Oil Markets – Full piece here: https://enews.marketnews.com/ct/x/pjJscQaBkuwI6a81IEwgGg~k1zZ8KXr-kA8x6nBU5OkptIPjO1OcQ