Oil Summary at European Close: Crude Up Over 5% on Week

Crude prices have extended their recent rally, with Brent exceeding its first technical resistance of $91.30/b to climb to its highest since Oct. 20. Rising Middle East tensions, OPEC+’s continued output cuts and some signs of improved demand from economic data are adding upside. Brent has risen around 5% on the week.

• Brent JUN 24 up 1% at 91.54$/bbl
• WTI MAY 24 up 0.9% at 87.36$/bbl
• US March payrolls +303k (+214k expected) Unemp rate 3.8% (3.8% expected)
• Saudi Arabia raised the official selling price for Arab Light crude for Asia for the second consecutive month in May to $2.0/bbl above the Oman/Dubai average.
• Oil markets are being supported by geopolitical risks highlighted by RBC’s Helima Croft in her latest interview with CNBC.
• China’s seaborne crude imports came in above 10mn bpd in March – the first time since October of last year according to Vortexa.
• The Western Canada Select (WCS) heavy crude differential versus WTI traded in the $12 range on Thursday – little changed from the previous session.
• Not a single sanctioned Russia oil tanker has loaded a cargo since being added to US Treasury’s Office of Foreign Assets Control list according to Bloomberg.
• Iraq’s crude oil exports stood at 3.423mbpd in March, compared with 3.434mbpd in February, oil ministry data seen by Iraq Oil Report showed.
• Twenty former US officials urged the Biden administration to reimpose sanctions on Venezuela if Maduro reneges on democratic promises by the April 18 deadline, Platts said.
• The recent uptick in oil prices from Israel/Iran tensions has priced in a little bit too early according to Energy Aspects Head of Research Amrita Sen