Oil Markets Edge Higher Early Friday

Oil prices are up slightly Friday but are headed for a second week of declines over global economic concerns, weak future oil demand growth and robust Russian output despite sanctions and 500 kbpd cut claims.

• Brent JUN 23 up 0.7% at 78.88$/bbl
• WTI JUN 23 up 0.5% at 75.17$/bbl
• Gasoil MAY 23 down -0.4% at 685$/mt
• WTI-Brent down -0.25$/bbl at -3.71$/bbl
• Oil markets have erased the gains from the surprise OPEC+ production cut announcement, in part signalling a well-supplied market at present. Russia’s Novak said Thursday that OPEC+ see no need for extra production cuts at present.
• Brent JUN 23-JUL 23 up 0.02$/bbl at 0.17$/bbl
• Brent DEC 23-DEC 24 up 0.13$/bbl at 3.54$/bbl
• US economic growth slowed more than expected in the first quarter, although jobless claims fell in the week ending April 22, data showed.
• An expected recovery in China remains an upside risk and the upcoming holiday period could bring a potential short-term boost to fuel demand – especially jet and gasoline. Tighter supplies are also supportive with the OPEC production cuts starting in May and disruption to Kurdish and Nigeria output.
• The US Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates at their upcoming meetings. The Fed meets over May 2-3.
• Diesel markets are still weak with US and European diesel forward curve backwardation at the narrowest since December 2021. Low margins are leading some Asian refiners to consider run cuts in the coming months.
• US gasoline crack down -0.2$/bbl at 30.05$/bbl
• US ULSD crack down -0.4$/bbl at 23.8$/bbl