- Oil prices are mostly unchanged after rallying above $83 last week
- So far in 2024, WTI prices have rallied more than 16% to the highest levels since November 2023
- US crude replacing some OPEC+ supplies (BBG)
- Markets normally supplied by OPEC+ crudes have seen higher imports of US oil due to sanctions on Russian and Venezuelan crude
- US oil exports have set five new monthly records since the start of sanctions on Russia in 2022
- US crude is now beginning to replace Russian oil purchased by India, as the country has found it difficult to work around the latest sanctions enforcement
- While US supplies cannot fully replace Russian crude due to a difference in quality and shipping time, there has been a shift toward US grades
- European demand remains strong (BBG)
- Goldman Sachs recently said in a note that they see oil demand in Europe supporting prices as consumption this year has risen 100 MBbl/d year-over-year
- This compares to the bank's earlier forecast that demand would fall by 300 MBbl/d in February and 200 MBbl/d over the course of the year
- Goldman sees softness in US supply growth, adding $5 to oil prices, OPEC cuts adding $7, and weak Chinese demand having a $-7 effect