Oil End of Day Summary: WTI Slips During US Hours

WTI has sunk during US hours, erasing all of yesterday’s gains. Front month remains up modestly on the week by around 0.3%. Focus today remains on geopolitical risks and the Middle East, OPEC+ output policy, and global demand.

• WTI JUN 24 down 1.2% at 78.3$/bbl
• OPEC+ production cuts are due to expire in December and new targets are needed for 2025 but the group will also need to discuss and agree to new production baselines, according to Energy Intelligence.
• OPEC+ crude production fell 210,000 b/d m/m to 41.04 million b/d in April according to a Platts survey.
• US total oil rig count fell by 3 on the week to 496 rigs, according to Baker Hughes.
• Line fill is complete on TMX according to Enbridge on its results call.
• Canada’s oil sands projects are set to undergo essential maintenance, with this year’s offline capacity likely to peak at 238k b/d.
• Strong US oil exports are again weighing on physical crude prices in Europe and West Africa according to Bloomberg sources.
• The US has extended a license allowing certain transitions with Venezuela’s PDVSA so that US energy service companies can maintain assets after sanctions were reimposed in April, Reuters said.
• Saudi Aramco have allocated full contractual crude volumes for June to at least five Asian refiners, according to Bloomberg sources.
• US Gulf Coast heavy and medium sour crude imports are set to pick up this month. 6 VLCCs enroute carrying Saudi crude are behind this increase according to Vortexa.
• UKMTO received a report of an attempted hijacking 195nm east of Aden, Yemen, it said via X.
• Loading programmes indicate Urals loadings from two Baltic ports are likely to drop in May vs April according to Bloomberg.