- Oil is trading lower, around $82.30, extending losses from yesterday
- The WTI cash roll, which trades in the days after the contract expiry, has reached the highest level since October 2022
- US repels Red Sea missile attack (BBG)
- The US military said that missiles launched by Houthi militants at ships in the Red Sea were “successfully engaged”
- A US warship and two commercial vessels were targeted
- This is the first on vessels in the Red Sea since April 10, as it appears military intervention has been somewhat successful in reducing the operational abilities of the Houthis
- Venezuelan sanctions lead to cheaper crude for China (BBG)
- Refiners in China are paying less for Venezuelan oil after the US reimposed sanctions on the South American country
- Merey crude, a heavy oil, recently traded at a discount of $-14/Bbl to ICE Brent compared to $-11/Bbl before sanctions were reimposed
- China will likely purchase more Venezuelan crude now that sanctions have been reinstated
