Oil Summary at European Close: Crude Edges Up on Week

Crude prices are edging down on the day but are set for marginal gains on the week. Upside is limited by a stronger USD, although support comes from Mideast tensions and attacks on Russian oil refineries.

• Brent MAY 24 down 0.2% at 85.65$/bbl
• WTI MAY 24 down 0.2% at 80.9$/bbl
• The reduction in Russian refining rates due to the latest Ukrainian drone attacks could raise Russian seaborne crude flows by 200-250kbpd to 3.7-3.8mbpd according to Kpler estimates.
• The US has urged Ukraine to halt attacks on Russian energy infrastructure, sources told the FT. However,
• Ukraine's Euro-Atlantic integration minister said that Russian oil refineries were legitimate targets for Ukraine's forces.
• All of India’s refiners are now refusing Russian oil delivered on PJSC Sovcomflot tankers due to US sanctions according to Bloomberg sources.
• The Sovcomflot sanctions issue means there are fewer tankers to deliver Russian crude, which has led to discounts for the nation’s oil narrowing to compensate for higher freight costs according to Bloomberg sources.
• Physical crude markets in Europe and Africa are weaker due to refinery maintenance and extra supply from the US and Saudi Arabia according to Reuters sources.
• A second cargo of Access Western Blend has been sold to an APAC buyer this week as Canada’s Trans Mountain Expansion nears completion.
• The Russian oil and gas industry does about 80% of its business in rubles and yuan according to Deputy Prime Minister Alexander Novak.
• Russian primary crude processing volumes are expected to decline by 300-400kbpd to an average of 5-5.2mbpd.
• Crude loadings from Guyana are planned at 21m bbl, or 677k b/d in May, according to loading programmes seen by Bloomberg, set to be the highest on record.