- Oil prices are up more than $1 to $82.40, heading for a weekly gain
- Saudi Arabia is expected to raise prices of its Arab Light crude grade to Asia by 10c in May
- Following yesterdays EIA storage report US crude inventories are now 2% below the five-year average
- OPEC+ cuts appear to be working (BBG)
- Crude prices have been strengthening this year as supply cuts from OPEC have combined with stronger-than-expected demand
- Brent has risen more than 11% since the start of the year to trade above $85/Bbl
- OPEC is unlikely to announce any changes to policy at their April 3 meeting, which will focus primarily on reviewing the recent output cuts
- Gunvor Group recently forecast crude prices rallying towards $90/Bbl, while Trafigura said their focus has shifted to “upside risk” in oil markets
- Canadian crude flows to Los Angeles surge (BBG)
- Three tankers carrying 1.74 MMBbls of heavy crude from Canada’s west coast have arrived in Southern California
- The oil was purchased by Marathon, likely due to delays at two Mexican export terminals hindering supplies of Zapoteco crude
- This could be a sign that more Canadian crude will be shipped to the US West Coast once the Transmountain pipeline begins operations
- Venezuelan tankers have been stuck (BBG)
- A group of tankers loaded with about 8 MMBbls of Venezuelan oil has been stuck for several months now off the county’s coast
- The ships may be idling due to complications from sanctions, which are set to resume in April
