Oil Markets Start Week Steady

Oil is steady in this weeks open as the market balances upcoming OPEC+ supply cuts against concerns about global demand for the remainder of 2023. Brent and WTI benchmarks rose for a third straight week last week after OPEC+ announced surprise production cuts starting in May which shocked the market. It is the longest such run for crude this year also helped by Russia’s announcement to reduce production by 500,000 bpd till year end.

• Saudi, which has committed to an extra 500,000 bpd production reduction as part of the cuts has raised its May OSP’s to term customers in Asia and the US last week.
• Brent JUN 23 down -0.1% at 85$/bbl
• WTI MAY 23 down -0.1% at 80.63$/bbl
• Gasoil APR 23 down -0.1% at 779.5$/mt
• WTI-Brent up 0.3$/bbl at -4.38$/bbl
• Talks between Iraq and Kurdistan remain in progress to try and restart northern oil exports with Turkey. It was one of the main upward drivers of oil prices prior to the OPEC+ announcement last week, pulling about 450,000 bpd of sour crude off the market. Turkey wants to negotiate with Iraq a settlement it’s been ordered to pay before an export pipeline is reopened.
• Brent JUN 23-JUL 23 unchanged at 0.45$/bbl
• Brent JUN 23-DEC 23 down -0.01$/bbl at 3.63$/bbl
• Brent DEC 23-DEC 24 down -0.01$/bbl at 5.58$/bbl
• Gasoline margins are ticking back from last weeks recovery after the EIA report showed oil product stock draws and higher implied demand. Diesel margins have also come back. Easing fears of tight gasoline and diesel markets post Russian sanctions have helped to soften prices as more volumes stay in global markets.
• US gasoline crack down -0.7$/bbl at 37.04$/bbl
• US ULSD crack up 0.3$/bbl at 31.6$/bbl