- Oil is trading down, around $77.40, extending losses from yesterday
- The US Dollar is trading sharply higher this morning, which often has a bearish impact on crude prices
- Timespreads have softened, with the WTI prompt spread the weakest in several weeks
- Iraq continues to produce more than quota (BBG)
- OPEC’s production cuts have stalled as Iraq has continued to produce more than it has agreed to
- Iraq reduced output in February by 14 MBbl/d to an average of 4.2 MMBbl/d, which is 200 MBbl/d more than its quota
- OPEC countries overproducing their quotas is a bearish risk for crude prices in 2024
- OPEC continues to forecast strong demand (Reuters)
- In its latest report, OPEC stuck with its forecast for oil demand in 2024 and 2025 while raising its forecast for economic growth
- OPEC has forecast stronger demand growth than many other forecasters, such as the IEA
- On the matter of stronger economic activity, OPEC said, "While some downside risks persist, a continuation of the expected momentum from the beginning of the year could result in additional upside potential for global economic growth in 2024."
- Russian energy infrastructure hit in drone attack (BBG)
- Refineries and oil export facilities in Russia continue to face attacks by Ukrainian drones, threatening a recovery in refining capacity after a previous drone attack took some facilities offline
- Earlier in the year, Russian product exports fell sharply as a result of an attack, which could be an ongoing theme if the drone attacks continue
