Oil Summary at European Close: Crude Dips

Crude markets erased some earlier gains despite a build in US crude inventories according to the updated weekly EIA petroleum data but crude continues to trade lower on the day. A Bloomberg survey had expected a small draw but API data had suggested a large build.

• Brent MAY 24 down 0.2% at 86.07$/bbl
• WTI MAY 24 down 0.2% at 81.48$/bbl
• EIA Weekly US Petroleum Summary - w/w change week ending Mar 22: Crude stocks +3,165 vs Exp -704, SPR stocks +744, Cushing stocks +2,107
• Crude inventories in the ARA region rebounded with an increase of 2.535mbbl to 51.62mbbl in the week to March 22 according to the latest Genscape data.
• JPMorgan maintains a baseline view for Brent prices to reach $90/bbl by May, and $85/bbl in H2 2024 but has the potential to rally to $100/bbl this year.
• Russian oil firms face delays of up to several months to be paid for crude and fuel as banks in China, Turkey and the UAE boost compliance requirements, eight sources told Reuters.
• Russian crude and condensate production is estimated to average 10.7mbpd this year, Viktor Katona, head of oil analysis at Kpler, said, cited by Bloomberg.
• Repair works at the pipeline to the Finnart terminal are nearing completion, two sources told Reuters.
• The North Sea combined BFOET loadings are scheduled at 655kbpd in May, compared with 653kbpd in April, according to loading programs compiled by Bloomberg.
• North Sea Johan Sverdrup crude loadings are scheduled to decline from a record of 793kb/d in April to 742kb/d in May, based on a loading programme seen by Bloomberg.