Ultimately Lower In Two-Way Asia Session

Oil swung with wider risk sentiment during Asia-Pac hours, with WTI & Brent last printing ~$1.50 softer than their respective settlement levels.

• The initial positive mood surrounding the weekend declaration of the gradual re-opening of the Chinese city of Shanghai has reversed after any disappointment surrounding PBoC inaction re: its latest round of MLF operations was magnified by much softer than expected Chinese economic activity data for the month of April, pressuring crude.
• Oil-specific weekend news flow was headlined by Iran talking up its ability to double exports, assuming there is sufficient demand, while the Iraqi government suggested that forces from the regional Kurdish government took control of some oil wells in the Kirkuk region (although the Kurdish authorities denied such a move had taken place).
• A quick reminder that Friday saw WTI & Brent crude add over $4.00 apiece, with buoyant equity markets, hope surrounding the aforementioned re-opening of Shanghai and geopolitical worry surrounding Sweden & Finland’s impending NATO membership applications supporting crude. We also note that Friday saw EC VP Sefcovic stress that the European Union is “very much determined to maintain a united front against Moscow by securing unanimous support for the proposed ban on Russian oil and winning Hungary over,” per the FT.