- Oil is trading lower, around $76, extending losses from yesterday
- Holdings in ETFs that track oil prices have fallen to the lowest level since late 2022 as investors have pulled money from the products
- Russia has been shipping some Urals oil to Venezuela as it looks to expand its number of buyers
- Goldman Sachs says the physical oil market is showing signs of strength (BBG)
- Timespreads have widened for many light and medium crude grades, which could imply a tighter physical market
- Prompt spreads in WTI Midland, WTI Cushing, and Mars have widened over the past week, along with stronger prices in several crude basis locations
- However, Goldman says the outlook remains mixed as higher Chinese demand has mostly been countered by higher exports from OPEC countries last week
- China buys Russian crude as Indian buyers turn away (BBG)
- Chinese refiners have increased purchases of Russia’s Sokol crude grade, as Indian buyers have shunned it due to sanctions concerns
- Refiners have received an average of 168 MBbl/d so far this month, three times more than in January
- China and India have been the largest buyers of Russian crude following the US-led sanctions, but issues in recent months have appeared between India and Russia over oil purchases
