Oil Summary at European Close: Crude Rises

Crude markets have added to the gains from late yesterday with WTI rising faster than Brent, supported by recent US macro data.

• Brent JUL 24 up 0.3% at 83.01$/bbl
• WTI JUN 24 up 0.5% at 79$/bbl
• Canadian oil sand hub, Fort McMurray, faces a second wildfire threatening the town, north of the city and closer to major energy operations.
• US Gulf crude exports have had a strong start in May, with volumes primarily targeting Europe as it recovers from peak maintenance in April.
• Tepid demand and ample supply are creating length for Europe’s crude markets, according to Platts Oil Market Podcast.
• China’s traditional heavy crude providers are set to face additional pressure amid completion of the TMX pipeline in Canada, according to Platts Oil Market Podcast.
• Nigerian crude is not looking particularly bullish, with around 10m bbl of unsold crude scheduled to load in May, dampening activity for June barrels too, according to Platts Oil Podcast.
• CPC exports of Kazakh crude out of the Black Sea increased in January-April by 4% y/y at 22.715 million metric tons (1.4mn bpd) according to Reuters sources.
• The summer-autumn season for eastbound navigation through Russia’s Northern Sea Route will begin July 1 and will last until Nov. 30, Rosatom said, cited by Bloomberg.
• Oil is forecast at $90/bbl in H2 2024 but with risks in either direction based on the outcome of the upcoming OPEC+ meeting, according to ANZ.
• Private sector interest in developing Mexico’s hydrocarbon resources remains despite the shift towards public AMLO, Platts reported.