Oil Summary at European Close: Crude Finds Robust Gains

Crude has extended earlier gains with support from a weaker US dollar as the market focus remains on upside risks from a possible OPEC+ production cut extension and tighter supplies amid Middle East tensions. Brent is on track for gains of around 4% on the week.

• Brent MAY 24 up 2.5% at 83.96$/bbl
• WTI APR 24 up 3% at 80.59$/bbl
• ICE Brent crude futures open interest has fallen in late February to reverse an increase seen earlier in the month while WTI interest also falls.
• US Central Command forces conducted two self-defence strikes against six mobile anti-ship cruise missiles that were prepared to launch towards the Red Sea February 29.
• The departure of EU-operated vessels and a generally shrinking fleet will likely increase capacity constraints for Urals crude, according to Vortexa.
• Chairman of Kazakhstan’s KMG said the country is not seeking alternate oil export routes to Europe that bypass Russia, according to Tass.
• Trans Mountain called for crude for line fill of Trans Mountain Expansion on Thursday, Derek Evans, CEO of MEG Energy, says in earnings call.
• Exports of Guyana’s Liza, Unity Gold, and Payara Gold crudes rose to a new high in February on a daily average basis, according to Bloomberg.
• Crude oil storage capacity utilisation rates at independent refineries in Shandong were 43.7% in the week to March 1, according to OilChem.
• OPEC+ are expected to gradually store barrels back to the market at the next ministerial meeting on June 1 according to Christyan Malek at JP Morgan.