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Oil End of Day Summary: WTI Struggling for Direction

OIL

WTI has oscillated between small gains and losses during the day. oil is struggling for direction following yesterday's climbdown. Crude relinquished some of its geopolitical risk premium due to lower concerns for Middle East supply.

  • WTI MAY 24 up 0.2% at 82.83$/bbl
  • Israel is unlikely to carry out a strike on Iran until after Passover, starting 29 April, according to ABC citing a senior US official.
  • Axios reporting that US and Israeli officials will today hold a virtual meeting about a potential IDF operation in Rafah - the second such meeting in recent weeks.
  • The Biden administration said it will not renew the Venezuelan sanctions waiver set to expire Thursday that had eased its ability to export oil to wider markets – namely the U.S.
  • The US’ reimposition of oil and gas sanctions on Venezuela is to hamper production by 120k b/d by 2025, according to Rystad Energy’s Senior Vice President Jorge Leon.
  • Venezuela rejects US aspirations to manipulate its oil industry, the Bolivarian Republic’s Foreign Affairs Minister Yvan Gil said, cited by Bloomberg.
  • Geopolitical risks added a $4-5/bbl premium for oil earlier this week and now provides a floor for oil according to Citi’s Dirk Willer but he does not expect further escalations in the bank’s base case.
  • Global oil demand so far in April averaged 101mbpd, tracking a 1.46mbpd year on year increase, JP Morgan said in a note.
  • Chinese crude oil imports in March rose to 49.050mn tons, up from 44.140mn tons in February but down by 6.2% year on year, Customs General Administration data showed.
  • A total of 790kbpd of crude oil was added to China’s strategic or commercial stockpiles in March.
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WTI has oscillated between small gains and losses during the day. oil is struggling for direction following yesterday's climbdown. Crude relinquished some of its geopolitical risk premium due to lower concerns for Middle East supply.

  • WTI MAY 24 up 0.2% at 82.83$/bbl
  • Israel is unlikely to carry out a strike on Iran until after Passover, starting 29 April, according to ABC citing a senior US official.
  • Axios reporting that US and Israeli officials will today hold a virtual meeting about a potential IDF operation in Rafah - the second such meeting in recent weeks.
  • The Biden administration said it will not renew the Venezuelan sanctions waiver set to expire Thursday that had eased its ability to export oil to wider markets – namely the U.S.
  • The US’ reimposition of oil and gas sanctions on Venezuela is to hamper production by 120k b/d by 2025, according to Rystad Energy’s Senior Vice President Jorge Leon.
  • Venezuela rejects US aspirations to manipulate its oil industry, the Bolivarian Republic’s Foreign Affairs Minister Yvan Gil said, cited by Bloomberg.
  • Geopolitical risks added a $4-5/bbl premium for oil earlier this week and now provides a floor for oil according to Citi’s Dirk Willer but he does not expect further escalations in the bank’s base case.
  • Global oil demand so far in April averaged 101mbpd, tracking a 1.46mbpd year on year increase, JP Morgan said in a note.
  • Chinese crude oil imports in March rose to 49.050mn tons, up from 44.140mn tons in February but down by 6.2% year on year, Customs General Administration data showed.
  • A total of 790kbpd of crude oil was added to China’s strategic or commercial stockpiles in March.