Oil Summary at European Close: Crude Slips Back

Crude markets have eased back with Brent below $90/b, despite continued Middle East uncertainty and tighter supply expectations. Comments from Iran’s Revolutionary Guard today may be more positive in terms of disruption to oil supplies.

• Brent JUN 24 down 0.5% at 89.89$/bbl
• WTI MAY 24 down 0.8% at 85.72$/bbl
• Iran’s Islamic Revolutionary Guard Corps naval forces said that Iran is choosing not to disrupt flows through the Strait of Hormuz in the Persian Gulf.
• OPEC+ crude output was again over its target in March with Iraq and Kazakhstan exceeding pledges according to an Argus survey.
• Mexico’s Pemex is planning to cut crude exports to customers in the US, Europe and Asia by at least 330kbpd in May, sources told Reuters.
• Prices for heavier crude grades along the US Gulf have climbed in recent weeks – trading at near parity with lighter grades.
• Spot crude prices could hit $100/b in 2024, Russel Hardy, Vitol CEO said April 9.
• Growth in US oil production is unlikely until the second half of the year according to Amrita Sen at Energy Aspects.
• Morgan Stanley has lifted its crude price forecast for this year on the back of geopolitical risks.
• The latest rally in global crude prices is due to improved demand figures, Frederic Lasserre, Gunvor’ global head of research and analysis, said.
• Russia’s seaborne crude exports in the first week of April reduced from the year-to date high reached at the end of March, according to Bloomberg.
• Caspian Pipeline Consortium halted oil loading on April 9 due scheduled maintenance according to the operator.
• Iraq is not expecting to export crude oil via the Kirkuk-Ceyhan pipeline anytime soon, Basim Mohammed Khudhair, Iraq’s deputy oil minister, said.