Crude markets are ticking down although the market lacks a clear trajectory. Concerns of weaker economic growth from looming US tariffs weigh against sanction threats against buyers of Russian and Iranian oil.
- WTI MAY 25 down 0.5% at 71.09$/bbl
- US President Trump has said this week that he believes Putin won’t “go back on his word” and he wants him to make a deal but will introduce “secondary tariffs on Russian oil” if needed.
- US reciprocal tariffs are to be announced at 3pm ET (8pm BST) on Wednesday. Press secretary Leavitt said that there would be “no exemptions at this time”.
- EIA crude storage change surveys (bbl): -0.45m, -0.7m (WSJ), -2.1m (Reuters).
- Canadian Heavy Crude discounts have shrunk to their narrowest since 2020, Bloomberg said.
- Albertan oil sands producer Syncrude is running at reduced rates ahead of maintenance work, according to sources familiar with the situation.
- China’s crude imports arrived at a 9-month high of over 10.5m b/d in March, Kpler said.
- China’s oil consumption will rise by 1.1% in 2025, owing to better-than-expected economic growth and increasing demand for petrochemicals, Reuters reports.
- Caixin China manufacturing PMI rose 0.4 points to 51.2 in March signalling moderate growth in the sector.
- Indian refiners are seeking non-Russian barrels from the spot market to reduce their reliance on Russian oil, Bloomberg reports.
- Kazakhstan’s oil and condensate output reached a record high in March, Reuters said.
- Rabobank expect Brent to fall to $67.50/b by the end of 2025, with a full year average of $70.50/b
- Iran’s observed crude and condensate shipments rose to 1.67m b/d in March, Bloomberg said.