US Daily Oil Summary: Meaningful Action on Iranian Oil Unlikely

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, both the Washington Post and Reuters said.

• The US DUC count rose for the first time in a year according to the latest EIA drilling report yesterday with shale explorers drilling wells faster than fracking them.
• US crude oil inventories likely increased for the fourth consecutive week, according to a WSJ survey. Crude stocks are seen rising by 0.6m bbl to 457.9m bbl, based on the average estimate of nine analysts and traders surveyed.
• Marathon’s 365kbd Los Angeles refinery had a process upset early on Monday that led to flaring of sulphur dioxide according to a filing.
• PBF shut the 76kbpd FCC at the 190kbpd Chalmette, Louisiana, refinery last week due to unplanned works, sources told Bloomberg.
• The greenback operates in positive territory once more, firmer against most others in G10, with the USD Index hovering just below recent cycle highs at 106.51, after hawkish Fed Chairman Powell comments pushed 10Y yield to 4.6943% high.
• Fed Chair Powell: The performance of the US economy over the past year has really been quite strong. More recent data shows a lack of further progress towards our inflation goal.
• Industrial production was in line in March as it increased 0.39% M/M (cons 0.4). Manufacturing production beat eat 0.48% M/M (cons 0.2) after an upward revised 1.19% (initial 0.8%) in Feb.