- Oil is trading lower, reversing gains after rallying above $85
- Prompt-month Brent settled in call-skew for the first time since November, indicating increased bullish sentiment in crude oil
- US sanctions impede Russian refinery repairs (Reuters)
- The withdrawal of western oilfield service companies from Russia is hampering efforts to maintain and repair refineries, especially after recent Ukrainian drone strikes
- Russia’s fourth-largest refinery has cut gasoline production by 40% due to a catalytic cracker being out of service without the necessary expertise to repair it
- An expert on Russia's energy industry at the Carnegie Endowment for International Peace said, “If the stream of drones continues at this rate and Russian air defenses don't improve, Ukraine will be able to cut Russian refining runs quicker than Russian firms will be able to repair them,"
- Trans Mountain expansion expected to start up in May (BBG)
- The expansion of the Trans Mountain pipeline is expected to begin service on May 1, after the completion of a particularly difficult segment of the pipe in British Columbia
- The company said, “There are several remaining steps, including outstanding approvals from the Canadian Energy Regulator” and that “With the appropriate approvals and completion of remaining construction activity, Trans Mountain will commence transporting crude oil”
- The pipeline will increase outbound capacity for Canadian heavy crude by 550 MBbl/d, which should help support differential prices
