Oil Summary at European Close: Crude Jumps

Crude has risen to a new intraday high, amid a US State department announcement that Venezuela sanctions may return in April. Earlier market rumours of another missile strike on a vessel in the Red Sea likely added further support, although no evidence of such a strike has emerged so far.

• Brent MAR 24 up 0.9% at 83.11$/bbl
• WTI MAR 24 up 1.5% at 77.9$/bbl
• The US government will not renew the sanctions relief on Venezuela unless there is progress on allowing all presidential candidates to compete in this year’s election. according to Matthew Miller, US State Department Spokesperson.
• The number of tankers diverting on longer voyages around the Cape of Good Hope has risen to 100 from the previous week, according to OB.
• Saudi Aramco could maintain the Arab Light official selling price to Asia unchanged in March according to the median estimate of a Bloomberg survey of seven refiners and traders.
• Saudi Arabia’s Energy Ministry has told Saudi Aramco to maintain its maximum crude capacity at 12mbpd not to increase its capacity to 13mbpd by 2027, as previously planned, according to S&P Commodity Insights.
• The 590kbpd Trans Mountain Pipeline expansion will now be completed in the second quarter at the earliest due to complications while pulling a pipe through a tunnel section according to the company.
• APIKUR has requested US Congressional action to help persuading the Iraqi federal government to resume oil exports from the Kurdistan region, it said in a letter to the US Congress.
• India is looking to strengthen its oil ties with Guyana, as it looks to diversify its oil supply, according to Platts.