Oil Summary at European Close: Crude Ticks Up

Crude markets have crept back up during the European afternoon session despite a stronger US dollar index and increased Russian crude oil supplies in April. Support comes from persistent geopolitical risks in the Middle East.

• Brent JUN 24 up 0.1% at 90.23$/bbl
• WTI MAY 24 up 0.2% at 85.56$/bbl
• NN reporting that according to a senior Biden administration official and a source familiar with intel, the US expects any Israeli response to the Iranian drone/missile attack over the weekend to be "limited in scope."
• Iran’s retaliatory strikes on Israel is unlikely to prompt dramatic sanctions on Iran’s oil exports from the USA amid worries about boosting oil prices and alienating China, Reuters said.
• Although the US may bring additional measures against Iran in retaliation for its attack on Israel, meaningful action is unlikely as it risks antagonising China, the Washington Post said.
• It’s too soon to fade the Iran-Israel tension story at present despite the lack of upwards price action for oil this week according to RBC’s head of commodity research Helima Croft speaking with CNBC.
• The muted reaction in oil prices to the Iran strike on Israel suggests the market believes an escalation into a broader regional conflict is unlikely according to HSBC.
• China apparent oil demand increased by 1.03% year on year in March to 14.75mbpd.
• Russia’s seaborne crude exports rose to an 11-month high in the second week of April according to Bloomberg vessel tracking.
• All CPC facilities are operating normally amid floods in Kazakhstan’s Atyrau region, the CPC operator said April 16, cited by Bloomberg.