OIL: Mid-Day Oil Summary: Crude Extends Gains

Crude front month has extended earlier gains supported by potential supply disruptions amid further attacks on Russian energy infrastructure and ongoing Middle East tensions. In addition, EIA raised the 2024 oil market supply deficit to 0.26mbpd in yesterday’s report, up from 0.12mbpd last month. Latest API data suggest a draw in US crude inventories last week.

• Brent MAY 24 up 1.4% at 83.1$/bbl
• WTI APR 24 up 1.6% at 78.82$/bbl
• The EIA weekly petroleum inventory data for the week ending Mar. 8 is due for release this afternoon at 10:30ET (14:30GMT).
• API weekly oil stock data: Crude -5.5mbbl, Cushing -0.998mbbl, Gasoline -3.8mbbl, Distillate -1.2mbbl
• ARA crude inventories rose 341k bbl, or 0.7% in the week ended March 8 to 51.8mn bbls according to Genscape.
• Ukrainian strikes on Russia’s energy infrastructure have damaged facilities that hold around 10% of the country’s oil processing capacity, according to DNB Markets' estimates.
• The independent 5.6m tons/year Novoshakhtinsk refinery in Russia’s southern Rostov region has halted operations after a drone strike according to regional governor Vasily Golubev.
• Russia’s Ryazan refinery is on fire after an apparent drone attack according to Tass reports as Ukrainian attacks on Russian oil infrastructure mount this week.
• The Russian tanker Krymsk, impacted by recent US sanctions on Sovcomflot, docked on Wednesday at the Chinese port of Dongying in eastern Shandong province according to LSEG.
• The highest Johan Sverdrup crude volumes since February 2022 is heading to China after Unipec bought 8m barrels of the North Sea grade to be delivered in May amid weak demand in Europe, according to Reuters sources.
• Oil product stocks in the Port of Fujairah, UAE, fell 3.2% w/w to a three-week low for the week ended March 11 according to official data.
• China’s refined oil production is expected to jump in Q2 amid less extensive state-owned refinery maintenance and resilient demand, according to OilChem.
• Gasoline cracks spreads rallied yesterday to the highest closing level since August. Upside comes from refinery outages and signs of tightening supply as summer driving season approaches. API data showed further draws in US gasoline and distillates stocks last week.
  • US gasoline crack up 0.2$/bbl at 31.44$/bbl
  • US ULSD crack up 1.4$/bbl at 33.73$/bbl