Oil Summary at European Close: Crude Rallies To Highest Since End-October

Brent front month rallied to the highest level since 30 October in a choppy session with slightly improved Chinese PMI data, tighter supplies amid OPEC+ cuts paired with geopolitical tensions in the Mideast and missile attacks on Russian refineries are proving upside, offsetting a stronger US dollar.

• Brent JUN 24 up 0.9% at 87.78$/bbl
• WTI MAY 24 up 1.3% at 84.24$/bbl
• Trading volumes have been thin today due to Europe’s Easter holiday.
• China’s manufacturing PMI of 50.8 in March showed the economy has made marginal improvements after rising above the 50 mark for the first time in six months, according to Wen Tao, analyst at the China Logistics Information Centre.
• OPEC crude oil production declined by 50kbpd on the month to 26.42mbpd in March, according to a Reuters survey.
• Saudi Aramco may raise the Arab Light OSP to Asia in May by $0.20-0.30/bbl according to a Reuters survey of six refining sources.
• Indian crude oil imports from Russia in March rose to 1.7mbpd, the highest level since November, and up by 9% on the month, Kpler ship tracking data showed, despite tightened US sanctions.
• The amount of crude oil held around the world on tankers that have been stationary for at least seven days declined by 19% last week to 67.10m bbl as of March 29, Vortexa data show.
• The UAE’s Upper Zakum crude exports declined sharply last month after ADNOC diverted more supply to its own refinery, Ruwais, and instead boosted exports of Murban crude, sources told Reuters.
• US crude oil production in January stood at 12.533mbpd, down by 762kbpd on the month and below the EIA STEO forecast, data from the EIA Petroleum Report showed.