Oil Summary at European Close: Crude Recoups Losses

Crude has rebounded during the European afternoon having neared technical support levels earlier. However, Front-month continues to struggle for direction as extended OPEC+ output cuts and Middle East tensions are weighed against Chinese demand concerns and strong non-OPEC production levels.

• Brent MAY 24 up 0.6% at 82.57$/bbl
• WTI APR 24 up 0.3% at 78.27$/bbl
• OPEC+ crude oil production rose to 34.62mbpd in February, up from 34.54mbpd in January and 0.30mbpd above the pledged output target according to Argus estimates.
• Saudi Aramco is planning to supply full contractual crude oil volumes to most Asian buyers in April but the producer will reduce supply of heavier grades to Asian customers due to oilfield maintenance.
• Saudi Aramco have allocated full crude volumes for April as requested by at least four European refiners, according to Bloomberg sources.
• Chinese state refiners will increase crude processing volumes to 43.81mn tons, or 10.36mn bpd this month, +11% m/m according to OilChem.
• A cargo of Russian light sweet Sokol crude has unloaded in Pakistan for the first time in over three years, according to Argus.
• Russia’s decision to deepen its crude output cuts in Q2 are based on forecasts for global demand growth, according to Deputy PM Alexander Novak.
• The US seaborne crude oil exports are expected to remain strong in March despite fog disruptions after almost rising to just below a record high in February according to Kpler.
• A Russian oil depot in the Kursk region caught fire on 10 March after a Ukrainian drone fell on the site, Roman Starovoyt, the Kursk regional Governor, said via Telegram.