Oil Summary at European Close: Crude Ticking up on Week

Brent crude is down marginally on the day but is set for a rise of around 1% on the week. Focus remains on geopolitical risks and the Middle East, OPEC+ output policy and global demand.

• Brent JUL 24 down 0.2% at 83.72$/bbl
• WTI JUN 24 down 0.1% at 79.2$/bbl
• OPEC+ production cuts are due to expire in December and new targets are needed for 2025 but the group will also need to discuss and agree to new production baselines, according to Energy Intelligence.
• OPEC+ crude production fell 210,000 b/d m/m to 41.04 million b/d in April according to a Platts survey.
• The latest Baker Hughes rig count data is due for release at 13:00ET.
• Crude implied volatility falls, and the options put skews has narrowed this week with market focus on upside risks from a possible extension to OPEC+ output cuts into Q3 and improved demand sentiment.
• Saudi Aramco have allocated full contractual crude volumes for June to at least five Asian refiners, according to Bloomberg sources.
• US Gulf Coast heavy and medium sour crude imports are set to pick up this month. 6 VLCCs en route carrying Saudi crude are behind this increase according to Vortexa.
• UKMTO received a report of an attempted hijacking 195nm east of Aden, Yemen, it said via X.
• Loading programmes indicate Urals loadings from two Baltic ports are likely to drop in May vs April according to Bloomberg reports based on loading schedules, driven by a dip at Ust-Luga.
• Line fill is complete on TMX according to Enbridge on its results call.