Oil Summary at European Close: Crude Erases Earlier Losses

Crude markets have erased earlier losses on the day amid a marked decline in the USD, with Brent rangebound and WTI slightly lower. Focus remains on future US interest rates and the lack of confidence in China’s economic growth.

• Brent MAY 24 up 0% at 83$/bbl
• WTI APR 24 down -0.2% at 78.96$/bbl
• Chinese crude oil tanker bookings from the Persian Gulf have increase in recent days according to Bloomberg.
• Kuwait Petroleum Corp is swapping cargoes with suppliers in order to avoid sailing via the Red Sea, KPC’s CEO Sheikh Nawaf Al-Sabah said, cited by Bloomberg.
• G7-linked tankers, particularly Greek operators, shipped 1.1mbpd, or 33% of the total Russian seaborne crude exports in February, up from 1mbpd in January amid strong freight rates.
• Transits via key waypoints Panama Canal and the Bab-el Mandeb strait remain low, disrupting the fluidity of tonnage and resulting in rerouting between markets according to Voretxa.
• The Russian tanker Liteyny Prospect, hit by sanctions, has docked in the Chinese port of Huanghua to unload 0.7m bbl of Sokol crude, sources told Reuters.
• Global oil consumption is strong, and the market looks relatively balanced in 2024 as OPEC+ tries to stabilise prices, the CEO of Kuwait’s KPC said.
• The summer may look constructive for oil were Russia to fulfil its pledged export cut, or the voluntary reductions are extended beyond June, JP Morgan said in a note.
• OPEC+ are likely to signal a gradual phase out of production cuts at its next meeting in June, MUFG Research’s Ehsan Khoman and Ramya RS said via Dow Jones.
• The 110k b/d Niger-Benin pipeline has been completed and could see its first cargo as early as April, according to Platts.