- Oil is trading lower, around $76.30, following last week's decline of nearly $2.50
- According to data from Baker Hughes, six crude oil rigs were added last week, the most since November 2023
- Red Sea disruption leads to tanker shortage (BBG)
- Attacks on merchant vessels have forced many ships to avoid the Red Sea and take longer routes
- The CEO of Euronav said, “The impact of the diversions can be seen every day in shipping in general, and I would say crude oil and product tanker shipping”
- This comes after the oil tanker industry has warned that not enough tankers are being built, with only two new supertankers entering service in 2024, 90% less than the yearly average of the past 20 years
- US physical oil prices climb on refinery demand (BBG)
- Refineries benefitting from strong margins and foreign buyers looking to avoid the Red Sea have been increasing purchases of US crude
- The WTI Houston differential rose to the highest level of the year, at a premium of $2 to NYMEX WTI
- According to people with knowledge of the matter, profit margins for refineries in the US and Europe surged, prompting them to postpone maintenance and buy oil in the spot market
