- Oil is trading higher, back above $78
- RBC said in a note that they expect OPEC+ to extend their production cuts through at least June
- Goldman Sachs and Bank of America both expect crude prices to remain rangebound in the near term, with Goldman seeing a $20 range around $80/Bbl and BofA expecting prices to stay between $60/Bbl and $80/Bbl
- Chinese buying raises oil demand hopes (BBG)
- After a boom in travel over the Lunar New Year, the outlook for Chinese markets has brightened, raising hopes of a more sustained demand recovery
- Energy Aspects said, “Some refineries may be raising run rates or postponing maintenance plans because of strong demand momentum following higher-than-expected Lunar New Year travel
- According to Mysteel OilChem, refining capacity in China is expected to rise 18% to a three-year high by the fourth quarter of 2024
- US sour crude prices rise as DOE refills SPR (BBG)
- Medium sour crude grades such as Poseidon and Southern Green Canyon climbed following an announcement by the DOE to buy more sour crude for the SPR
- Physical prices for Poseidon are trading at the highest level in more than a month at a premium of 8c to NYMEX WTI, while SGC is trading at the narrowest discount in more than a week at -45c to WTI
- The DOE is seeking 3 MMBbls for delivery in August
